[ksaxena]

No. Options also provide a fundamental service - insurance. So, in the case where the option buyer is paying for insurance, sellers add value by underwriting the risk that is being insured. Hence, both the buyer and the seller win - the buyer gets insurance, the seller gets cash.

[Jenk]

... and the insurance underwriters lose, upping their fees the next time around, so future insurance customers lose out, too.