Traders who sell an option receive a fee or premium in exchange for giving the buyer of the option the right to buy or sell the stock at a specific price and on a specific date.
Put and call options for stocks are usually written in lots, each lot corresponds to 100 shares.
The commission or premium received when selling an option depends on several factors such as the current share price and the expiration time of the option.
The benefits of selling an option include receiving an immediate premium, holding the premium if the option expires worthless, time decay, and flexibility.
Selling an option may result in a loss of more than the premium received.