chmith27

I'm not an expert by any means .. but here my two cents:

From a BUYERS prespective Puts generally are bearish bets and Calls are bullish bets. In your example: you sold the put, but the person who bought it is either betting the price to fall or hedging for so. Similarly in your examle of OOM Call: you sold, but the buyer of that is someone who is expecting a price increase - there's no other reason for him to buy.