Which Options Trading Strategy Involves a Similar Risk Transfer from Buyer to Seller?
Selling a naked call or a naked put option involves a similar risk transfer. When a seller writes a naked call, they receive the premium (guaranteed revenue) and take on the potentially unlimited risk of the underlying asset's price rising sharply.
The buyer pays the premium for the right to transfer this price risk to the seller. This mirrors the PPS mining pool, where the miner pays a fee (implicitly, by accepting a lower payout) to the operator to transfer the variance risk.
