This site helped me

[newwurldmn]

There is NO inherent edge to selling options over buying them.

there is. But it may not be enough to cover your cost of capital.

 

[taowave]

Other than IV typically priced above HV,not sure I see the edge,and if the edge exists it's really in one's ability to delta hedge better than most

there is. But it may not be enough to cover your cost of capital.

 

[MarkBrown]

i knew a guy who made 18 billion only selling options - he taught me that buying options is for fools.

it's logical if you think about it

 

[taowave]

Over what time frame..

i knew a guy who made 18 billion only selling options - he taught me that buying options is for fools.

it's logical if you think about it

 

[newwurldmn]

Other than IV typically priced above HV,not sure I see the edge,and if the edge exists it's really in one's ability to delta hedge better than most

I think that is the edge: The volatility risk premium.

On a philosophical note, With the financialization of our economy, so much of everyone’s earnings is the monetization of risk premium.

 

[mervyn]

Over what time frame..

it is a joke

 

[David's faith]

If you are serious,take a look at Orats. ImHO,they have the best backtester on the market...

There is NO inherent edge to selling options over buying them.

Most options decay without assignment so I guess there is, depending on how many ATR's out you go.

 

[taowave]

Wait, so you are saying the trader didn't make 1 bil selling cheap vol?

it is a joke

 

[murray t turtle]

This applies to all financial markets, not just options.

%%
LOL most likeley more like 80-20%
BUT even when 80% business fail/ for those cut out not wanting to wok for some one else,;
odds dont matter much.............................................

 

[wxytrader]

If you are serious,take a look at Orats. ImHO,they have the best backtester on the market...

There is NO inherent edge to selling options over buying them.

Yes there is lol... buying you have premium and time decay working against you.