Basic of strangle option Option traders can benefit from being an option buyer or an option writer. Options allow a potential gain in both volatile times, and when the market is quiet or less volatile. This is possible because asset prices such as stocks, currencies, and commodities are always moving, and regardless of market conditions, there is an options strategy that can be leveraged. key takeaways • The options and options strategies that profit and loss use - profits and losses - have defined profiles to understand how much money you can earn or lose. • When you sell an option, the most you can earn is the prime price collected, but there is often an unlimited downside possibility. d • When purchasing an option, the upside could be unlimited and the most that you can lose is the cost of the options premium. • Depending on the options strategy used, an individual can benefit from any number of market conditions, from emerging and falling markets to sideways markets. Options differentials tend to cover potential profits as well as losses basics of profitability • A buyer of a call option can make a profit if the underlying asset rises, let's say a stock, above the strike price before it expires. The buy option buyer makes a profit if the price falls below the execution price before the expiration. The amount of profit determined depends on the difference between the share price and the strike price at the expiration date or when the option position is closed. • The call option writer makes a profit if the underlying share remains below the strike price. After writing the put option, the trader will win if the price remains above the strike price.