--- title: "Option buying or option selling: which is better | RupeeCase" description: "Buying and selling the same option are mirror payoffs, so the choice is about the shape of the payoff and the costs, not about which side is smarter." source_url: "https://www.rupeecase.com/learn/questions/option-buying-vs-selling" --- A sold strangle keeps its premium only between two breakevens Profit and loss at expiry for one lot, sold at the settle prices of 10 Jun 2026. The buyer of the same pair has the mirror image. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Here is a seller's payoff on one pair from the 10 Jun 2026 chain: a call and a put sold far enough from the index that both look safe. The chart shows the zone where the seller keeps the whole premium, and the losses outside it. The seller keeps the premium if the index settles between the two breakevens. Outside them the loss grows with every point, and on the call side it has no ceiling. The buyer of the same pair holds the mirror image. The loss is capped at the premium paid, and the gain can run on. Win rate is how often a trade makes money. Expectancy is what an average trade makes: the win rate times the average win, minus the loss rate times the average loss, less costs. A seller who wins most trades can still lose money if one losing trade costs more than all the premium collected on the trades before it. Costs apply to both sides. From 1 Apr 2026 the STT on an option sale is 0.15% of premium, and the STT on an exercised option is also 0.15%, charged on its intrinsic value. SEBI's study of FY26 shows where the money went. It found that 87.7% of individual traders in equity F&O made a net loss, with an aggregate net loss of Rs 91,685 crore. Options trading accounted for 92% of individual losses. The study counts traders by their net result for the year, not trade by trade, so it cannot settle the question alone. The question is about the trade, not the trader. Ask what the payoff looks like, what the costs are, and what the average result is after every loss. The payoff builder below draws both sides of any pair. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) Option buying or option selling: which is better?Buying and selling the same option are mirror payoffs, so the choice is about the shape of the payoff and the costs, not about which side is smarter. What decides it is expectancy, the average result per trade after the losing trades are counted, and a high win rate can still come with a negative expectancy. Wrong as stated. Theta is the price the seller gets for carrying gap and volatility risk, and that pay arrives as many small gains before a loss that can exceed all of them. LGo deeper ## Where Learn teaches this. [Go deeperBuyer or seller: payoffs, margin, win rate and expectancy9 min, Beginner](/learn/path-14/module-14-3-option-buyer-vs-seller)[Go deeperStraddles and strangles, long and short8 min, Intermediate](/learn/path-17/module-17-5-straddles-and-strangles)[Try itPayoff builderLegs from a dated chain, the expiry and before expiry curves, breakevens and the charges.](/learn/tools/payoff-builder) SSources ## Go to the source. 3 sources, SEBI the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [SEBI, Profitability of individual traders in the equity derivatives segment, FY25 to FY26 (Aug 2026)](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) SEBI 2. [SEBI study PDF, same title (Aug 2026)](https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1787233506209.pdf) SEBI 3. [NSE circular NSE/FATAX/73524 (STT rates from 1 Apr 2026)](https://nsearchives.nseindia.com/content/circulars/FATAX73524.pdf) NSE ?Questions people ask ## Related questions. [QuestionHow much capital do I need to trade or sell options?Beginner, trap check](/learn/questions/capital-needed-for-options)[QuestionWhy do 9 out of 10 F&O traders lose money?Beginner](/learn/questions/why-fo-traders-lose)[QuestionCan option selling give a "daily income"?Intermediate, trap check](/learn/questions/option-selling-daily-income)[QuestionIs there a "sure shot" option strategy with 90% accuracy?Beginner, trap check](/learn/questions/sure-shot-option-strategy)[QuestionIron condor, iron fly and butterfly on Nifty: setup and "success rate"?Intermediate, trap check](/learn/questions/iron-condor-nifty) [All 130 questions](/learn/questions/) Explore next ## Go deeper on this question. * [QuestionWhat are futures and options (F&O kya hai)?A short answer with a dated chart](/learn/questions/what-are-futures-and-options) * [GlossaryInvesting glossary, 230 termsPlain word definitions, and the app’s own](/learn/glossary) * [Free module 14.3Buyer or seller: payoffs, margin, win rate and expectancy9 min read](/learn/path-14/module-14-3-option-buyer-vs-seller) * [QuestionHow much capital do I need to trade or sell options?A short answer with a dated chart](/learn/questions/capital-needed-for-options) * [Free module 17.5Straddles and strangles, long and short8 min read](/learn/path-17/module-17-5-straddles-and-strangles) * [QuestionsQuestions on futures and optionsShort answers, each with a dated chart](/learn/questions/) Community ## Join my WhatsApp group. 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