Being a options seller essentially means profiting from the market’s volatility spread. This model sounds simple, but the underlying logic is worth a deep dive.

First, some data: historical data from traditional finance shows that about 80% of options contracts expire worthless. What does this mean? As a seller, your probability of winning is inherently higher. The premium you collect is like an insurance premium—though you might occasionally have to pay out a large sum, most of the time it’s steady income.

So how can we apply this logic to the crypto market, which is a volatility monster? Let’s break down some practical strategies.

**Selling Put Options** is the most straightforward. If you’re bullish on Bitcoin, you sell a put option and collect the premium. If the price doesn’t fall below your strike price, at expiration, that money is yours. What’s the risk? If the price drops sharply, you’ll have to fulfill the contract, potentially buying at a higher price.

**Vertical Spread Strategy** involves leverage. For example, selling a put option and simultaneously buying a lower strike put option. This limits your maximum loss but also reduces the premium received. It’s like a discount—finding a balance between margin efficiency and risk tolerance.

**Ratio Credit Spread** is a more advanced move. Selling multiple high-strike puts while buying a lower-strike put to hedge. It sounds complex, but the advantage is—you can leverage a larger position with less margin. The cost? If the market crashes, losses can accumulate quickly.

The key is understanding the win rates, margin efficiency, and liquidation points under extreme market conditions for each strategy. Crypto’s volatility is much wilder than traditional markets, so risk management becomes even more critical.

In essence, transforming from a gambler to a market maker means systematically collecting steady rent. You’re not betting on direction; you’re profiting from volatility itself. With proper position management and risk plans, even if prices surge or crash, your losses can be kept within acceptable limits.