Question: Selling options investing?
Can you tell me what is the difference between Selling options vs selling stocks? is it the same?
Answer:
No, See your other similar question
If you are selling an option that you previously purchased it is the same as selling a stock you previously purchased. In either case you are closing your position and realizing a profit or a loss.
If you are selling to open (shorting a stock or writing an option) instead of selling to close, there are significant differences. When you short a stock you know you will have to buy the stock at some time in the future to close the position. When you write an option you are accepting an obligation to complete a trade if, and only if, the owner of the option decides to exercise it. If you write a call option you are accepting the obligation to sell the underlying security. If you write a put option you are accepting the obligation to buy the underlying security. You may choose to close an option position you have written by buying the option, but only if the option has not already been exercised. It is also possible the option will expire worthless so that you never need to buy it to close the position.
Another difference is that if you are short a stock when it goes ex-dividend you have to pay the dividend, but an option position does not.