PCR Trading Strategies

Option Buyers vs. Option Sellers
Option Buyers

Limited loss (only premium paid)

Unlimited profit potential

Higher risk of loss due to time decay

Good for small capital traders

Option Sellers (Writers)

Limited profit (premium received)

Potentially unlimited loss

Benefit from time decay

Requires high margin and experience

Example:
A seller who sells Nifty 22,500 CE for ₹100 receives ₹100 premium.
If Nifty stays below 22,500, the seller keeps the entire premium.