Option selling, also known as writing options, is a trading strategy where you earn a premium by selling call or put options. Unlike option buyers who pay a premium hoping for large movements, option sellers benefit from time decay and market stability. The core idea is that most options expire worthless, meaning the seller keeps the premium. This strategy is well-suited for traders who prefer consistent income and have a good grasp of market direction, volatility, and risk control. For example, in range-bound markets, selling both calls and puts (known as a straddle or strangle) can generate profit as long as the price remains within a defined range. It is crucial to understand the obligation that comes with option selling—if the market moves sharply against the position, the losses can be substantial unless protected by hedging.