Hi all, in several articals and books I read that harvesting risk premia can be a good strategy. It means, that you are sold for taking a risk that others do not want... For example holding a stock that are too risky for most of the others.

My question: who is paying for it? What is the mechanism? If holding a stock is too risky for other traders, the price should fall and the risk premia is a negative one.

Could anybody please give me hint?

Thanks a lot

An example is selling an option. The taker pays your for the risk of a sudden price drop or rise.