As an option writer/seller, we received a premium upon selling. We are effectively selling an 'insurance' to the buyer, with a promise that we will buy/sell based on the strike price. Our aims is to let the option expired worthless, out of money (away from strike price), upon expiration date. So, our buyer will not make claim on the 'insurance', and we get to keep the premium as profit.
Disclaimer: I am not a licensed financial advisor and I do n...