Comment on Basics on Options Shorting/Writing
1. hmm.. tricky :). But yes, if you trade correctly definitely less riskier than futures.
2. Option writing has higher odds of winning than option buying as explained in the post above.
3. If you shorted 8700 call when Nifty was at 8100 at Rs 2.9. If Nifty goes upto 8700, the premium on 8700 call would have definitely gone up. Assume it went to Rs 100, if you now buy back, you will book a loss of Rs 97.1. (100-2.9). Your understanding is wrong, writing has unlimited loss. As soon as you shorted 8700 calls at Rs 2.9, if Nifty starts moving higher, automatically the premium will start going higher causing u a loss.