InvestorQ : Who are the buyer, holder and the seller of the option?
Bhavik Nehru made post

Who are the buyer, holder and the seller of the option?

Answer
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Bhavik Nehru answered.
2 years ago


Option Holder is the same as the option buyer. They are just two different names for the same person. Option buyer is the one who buys an option, which can be a call, or a put option. He enjoys the right to buy or sell the underlying asset at a specified price on or before specified time. An option buyer normally is the person with a view on the stock that it will either go up or it will go down. If you expect the stock price to go up then you buy the call option and if you expect the price of the stock to go down then you buy a put option. His upside potential is unlimited while losses are limited to the premium paid by him to the option writer.