That’s really well put (so to speak). Options are the epitome of asymmetrical risks, almost like venture capital investment on a tiny scale. They reward people who take a measured and limited-risk approach, repeated many times over, but often wreck those who don’t (as you laid out).

I strongly prefer selling them for smaller but more predictable wins. Still, a few long-term call purchases (for speculation) and put purchases (for downside protection on equity positions) will always have a place in my portfolio.