What is the most likely reason someone will write (sell) put options to collect relatively small revenue (option premium) despite big risks? Writer bought the stock when the price was low. The writer sets the exercise price significantly higher than the purchase price of stock. Even if option is exercised he locks into significant profit. but gives up the possibility of even higher profit. Writer thinks the stock will go down and option is unlikely to be exercised. Writer short sold the stock when the price was higher. The writer sets the exercise price significantly lower than the sale price of stock. Even if option is exercised he locks into significant profit but gives up the possibility of even higher pront. o Writer thinks the stock will go up, short sold the stock when the price was lower. The writer sets the exercise price significantly higher than the sale price of stock. He locks into significant profit but gives up the possibility of even higher gains