Part 4 Learn Institutional Trading

Participants in the Options Market

There are four types of participants in the options market:

Buyers of Call Options – Expect the price to go up.

Sellers of Call Options – Expect the price to stay the same or fall.

Buyers of Put Options – Expect the price to fall.

Sellers of Put Options – Expect the price to stay the same or rise.

Buyers take limited risk (the premium) with unlimited profit potential, while sellers take limited profit (the premium received) but unlimited risk.