The best outcome for the seller of a call options is:

Question

Quizplus · Accepted Answer

The best outcome for the seller of a call option is when the option lapses at expiry because this means they get to keep the entire premium paid by the buyer without having to sell their shares at a potentially lower price if the options were exercised. Options being exercised by the holder means the seller would have to sell their shares at the exercise price, potentially missing out on higher market prices. A higher share price and an increase in the value of the option are favorable for the buyer of the call option, not the seller.

The Best Outcome for the Seller of a Call Options