Option writing can be very profitable because the majority of options are never exercised.

Name: Option writing can be very profitable because the majority of options are never exercised.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The majority of options are either sold before expiration or expire worthless, meaning that the option writer keeps the premium collected without having to fulfill the obligation of selling or buying the underlying asset. This makes option writing a potentially profitable strategy.

Option Writing Can Be Very Profitable Because the Majority of Options