According to the text, what is one of the key challenges an option writer faces?

Predicting future market trends Selecting the right strike price Managing margin requirements Understanding complex option strategies

What statistical concept does the text suggest can help option writers minimize worry and increase confidence?

Regression analysis Normal distribution Game theory Monte Carlo simulation

The text mentions that Nifty's daily returns follow a normal distribution. What percentage of data is expected to be within the 1st standard deviation (SD) from the mean?

50% 68% 95% 99.7%

Why does the author prefer writing (shorting) call options over put options?

Call options have higher premiums Put options have higher risk due to potential market panic Call options are easier to understand Put options are less liquid

What is the author's recommended approach for setting stop-loss levels in trading?

Using a fixed percentage of the entry price Basing it on the stock's volatility Using technical indicators like moving averages Setting it at the previous day's low