I am new to derivative market.I know how buying options works. I have a few questions regarding option writing.Here
1.How does pricing in option writing works? I saw premium credited into my account during option writing,Does that mean i am not paying anything during option writing?
2.Is the only way to make money in option writing is to expire worthless, or can it be bought back before the expiry and the difference in premium(market goes sideways) can be made?