Option selling typically requires more money than option buying because the seller of an option is obligated to fulfill the terms of the contract if the buyer chooses to exercise their option.
When an investor sells an option, they receive a premium, which is the price paid by the buyer to obtain the right to buy or sell the underlying asset at a specified price (strike price) and by a specified date (expiration date). However, if the buyer exercises their option, the seller must fulfill the obligation by either buying or selling the underlying asset at the agreed-upon price.
This means that the seller of an option must have enough cash or margin in their account to cover the potential purchase or sale of the underlying asset. In contrast, option buyers have the right, but not the obligation, to exercise their options, which means they can choose whether or not to buy or sell the underlying asset. This reduces the risk and potential cost for buyers, and as a result, buying options typically requires less capital than selling options.