Search results

Does it mean you can then simply buy the spreads instead of selling them, and be profitable on average in the long run? Or is it more a case of market-makers eating up any of the potential profits either way (i.e. wide bid-ask spreads)? For an options novice like me, it seems that if one side of...

Hi all, I am new to options, so please bear with me. If options are like insurance, and option premiums are like insurance premiums, then selling premium on individual components is like selling insurance and buying the corresponding index option is like buying reinsurance. It would appear that...