ATM options for premium decay

[ironchef]

The equity indexes have two nice built-in features:

1. A long-term upward bias
2. Overpriced puts

Don't they just balance out so that the long term outcome of selling puts is equal to (or almost equal to, if you look at CBOE PUT index) the returns you get for holding the underlying? So, perhaps people who sell puts thinking it is free money is actually not free money?

Regards.

 

[chartman]

Bought weekly 11450 call 61.3 for the santa rally in support of wall street crooks.

https://www.thealertinvestor.com/santa-claus-rally-explaining-wall-streets-christmas-cheer/

https://www.google.co.uk/webhp?sour...n=1&espv=2&ie=UTF-8#q=wall+street+santa+rally

What is a 'Santa Claus Rally'
A santa claus rally is a surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.

 

[chartman]

Tax considerations are the most important aspect of trading the last week of the calendar year. All professional traders/marketmakers are preparing to mark their trading inventory to the market.

 

[tradelosses]

selling the 120+ day strange is the best way to make $. It requires very little analysis or predictions . roll and cover after a month, repeat