Option Selling – The Best Business

Warren Buffet states that insurance is the world’s most profitable business. Different companies are selling reams of insurance policies and collects payment for each. Only a few of those result in claims – which are paid out of premiums collected. The rest is kept as profit. What is the world’s most profitable business? The option selling business has many similarities. You […]

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How to sells calls and puts

Traders sell calls and puts depending of their assumption. They will receive option premium upfront by selling options. In this yield-seeking environment, selling options is a strategy designed to generate current income. We sell options with high implied volatility. We want the option to expire worthless or we buy them back when they are much cheaper. If you the options […]

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Selling Options is Smarter

  Selling options is smarter than buying, and it is more complicated than trading stocks. And when you trade it for the first time it can be a little intimidating. That’s why many investors decide to begin trading options by buying short-term calls. Especially out-of-the-money calls (strike price above the stock price). The buyer is hoping to buy it for […]

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