Market makers mostly sell options, and the public buys?

Quote from emini-wap-wap:

90% end worthless, yet the un-informed stupid trader keep buying them so if you have a 90% chance of making money selling them
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I think the actual statistic is 80% of options held at expiration are worthless. But a large proportion of the outstanding options on any given option series are closed out before expiration.
 
Quote from dr_sean:

If 90% of all options end worthless, then the 10% that don't pay for the rest. There's no sustained edge in one side of the market.

Keep selling options...you'll keep making money, until one day that stops working. And you will literally lose everything you've made so far--maybe more.
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I see you've read fooled by randomness:cool:
 
Quote from loufah:

I think the actual statistic is 80% of options held at expiration are worthless. But a large proportion of the outstanding options on any given option series are closed out before expiration.
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Yes.

According to the Chicago Board Options Exchange, typically only about 30% of options expire worthless in each monthly cycle. Only about 10% of options are exercised during each monthly cycle, usually in the final week before expiration. In fact, over 60% of all options are traded out in the marketplace.

These stats are on the CBOE website... somewhere.
 
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