advantage to selling options?

[destriero]

Options writers also make money because the Black-Scholes model is flawed. In fact, I strongly suspect that it has been designed to profit the option sellers...

 

[Tradex]

Over and out.

 

[TheBigShort]

one good thing comes out of these pikers. You can see who likes their posts and write them off. Helps cut through the noise on ET

 

[destriero]

The stock drops to 70 and you collect the premium ($$).

Then you find another stock with no upside potential and rinse and repeat.

Simple as that.

 

[ironchef]

Sorry to hear that but who said selling covered calls was easy?

The trader still has to do his homework and find the best stocks to write calls on.

Generating a steady income is not easy no matter what trading strategy we use, and selling covered calls is no exception.

Thank you, Don't have to feel sorry for me. I learned my lesson well.

We learned through mistakes, either our own or someone else's, when that someone else was kind enough to share. Nothing pleases me more than when I am wrong and someone points it out to me. I don't feel embarrass in an anonymous forum anymore.

Take care.

 

[Croatrader]

It doesn’t change anything except for the volatility of your returns. It does not change your expected value.

There is no steady income selling volatility. It’s inherently as speculative as buying volatility or picking stocks. Don’t be fooled by the positive cash flow and risk premium.

Perhaps no significant income but there is steady engagement and training of my frontal lobe with positive reinforcing sensations. Income adds up over the long term.

 

[optquant]

to put it short,

selling options is shorting volatility,if you can handle the volatility, you can short the options, no much different from selling futures or stocks.

And people killed by selling options is mostly killed by high volatility.

 

[newwurldmn]

to put it short,

selling options is shorting volatility,if you can handle the volatility, you can short the options, no much different from selling futures or stocks.

And people killed by selling options is mostly killed by high volatility.

"To Put It Short"

hahahahaha

 

[lindq]

One of the most heralded retail traders to sell options was "Karen the Supertrader." She started off with $11,000 (or maybe it was $100,000) and ran it to $41,000,000.

Wonder whatever happened to her?

She was revealed to be a fraud. Her numbers were phony.

 

[herbertjulien]

Yes, I can see your point exactly, don't worry...
And by the way I do not sell options, I swing trade the Forex.

All I know about Selling options is it allow a trader to get their potential profits.