Statistical data shows that option sellers in the market face an awkward phenomenon—most of the time, the implied volatility (IV) of sold options is actually lower than the realized volatility (RV), which means sellers are essentially doing a losing business. In simple terms, they are using their own capital to subsidize the liquidity of the entire market.

This is not an isolated case but the norm in the market. No one will give you special treatment just because you are a seller; the market has always been ruthless—traders need more than passive endurance to survive in this game.

So what should be done? Frankly, there is no standard answer. But if you want to find someone who understands this logic, it’s definitely the veterans who have been active in the derivatives market for many years. They know how to find opportunities in IV/RV imbalance, or at least know how to bear risks more intelligently.

All of these are worth a deep dive.