Even though going long SPY options has limited risk for that specific trade, the life of the option is limited and time value always goes to zero. So your risk is limited but the losses do add up and are cumulative (like buying lottery tickets, you risk 1 dollar but over 1000 buys you ended up losing 1000 dollars) but for the seller if you short 100 puts on spy lets say and you have the cash to take delivery of 10,000 shares fully paid if assigned (which means no margin interest cost, cash collecting short term interest) Worst case scenario for long put buyer is position is time limited and might not be able to move fast enough to fight theta erosion and still ends up with a realised loss. Worst case scenario for short seller of put, is you are assigned 10,000 shares of SPY. BUT at least with SPY you do end up with an asset that will eventually appreciate over time and does pay a distribution (VS putseller who when he loses, has nothing of value left) And if you have the 10K shares of SPY you can hold on and wait (Time on your side) or sell some covered calls and still collect income. So over time aint the seller of options the one who will win over time as capital will grow VS the buyer who will see over time an erosion of capital? This is why I never really worry when my short puts sometimes go deep in the money because I know even if I lose "ie get SPY stock" At least I got something with value and will just bid my time. But usually lately it goes in the money for a while and just ends up going back OTM anyhow. I stick to selling put options that have a max life of 45-50 days. and ATM or slightly OTM Anyhow my return is 7.48 VS S&P of .90 right now.