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In video 29E, what would make it clear is that the option selling firms are initiating new short/long positions to hedge the options they already sold.
If the firm sold puts, and the market drops, they initiate new shorts on the stock which they can buy back at a lower price and make some profit. The puts will only make money if the market goes up or stays sideways.
If the firm sold calls and the market rises, they buy the stock which they can sell for a higher price. The calls only make money if the market stays sideways or drops.
I think the emphasis on initiating new positions would make it slightly more clear. I'm leaving this here in case any one else has the same doubt.
