So im not a option trader (and dont really plan on becoming one), so bare with my lack of knowledge.
I have noticed on some different brokers that they allow you to sell an option. This means your potential profit it limited to the cost of the option, and your potential loss is effectively unlimited.
Why would they offer this functionality if no one would use it? One could easily just buy put option instead of selling a call (in which case your potential profit would be unlimited and your potential loss would only be the cost of the option).
Another point i noted when going through the PDS from Go Markets, is that they dont not recommend you sell an option unless you are a professional trader.
So when would someone sell option?
p.s. Is what im talking about called "short selling an option" or just "selling an option"?