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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Selling Call Options

Selling Call Options is in general not the first trade an investor makes. They sell call options when they suspect that the price of the underlying will fall. Selling or Writing call options is contrary trade of buying calls. A trader that buys a call option expect the underlying to increase in price. A trader that sells a call options have […]

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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 Stock Options 101

If you want to start with trading, selling stock options is not the the first thing what comes to your mind. There is a good chance you immediately think of one thing: investing in stocks. Investing in stocks Why do people choose stocks if they think about investing? Learn the fundamentals on how to invest in stocks, including approaches and […]

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Make Money when Options Expire

Smart traders make money when Options Expire. They earn money by selling time premium or time decay. Time decay is the enemy of the option buyer but is the BEST FRIEND of the option seller, especially when the options expire (worthless). The concept of selling options and waiting for the price to decay is a slow process. With selling option […]

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Why Short Selling Stocks

 Purchasing a put option and entering into a short sale transaction are the two most common ways for traders to profit when the price of an underlying asset decreases. A short sale transaction consists of borrowing shares from a broker and selling them on the market in the hope that the share price will decrease and you’ll be able to […]

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What are Stock Options?

Companies who needs money to expand their business can go to the bank for a loan or issue Stock Options. Stock Options have two similar but slightly distinct meanings in everyday use. The first use is in the sense of employee stock options. And the second use is that stock options are traded on an exchange. An employee stock option […]

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How to Trade Volatility effectively

For traders it is important to know how to trade Volatility. What is it and how can you use it? When the stock moves up and down Volatility increases. While uncertainty increases the option premium increases. This change of the stock option premium always is exaggerated. And the experienced trader knows that the the price will have a mean reversion. Why […]

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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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Why is Selling Options better than buying

Buying Options Vs. Selling Options. What is better buying or selling options? Would you rather pay in order to have a chance to make a profit or receive option premium at front. Trades that Sell Option Premium has the several ways to make consistent profit with options. You don’t have to know in which direction a stock is moving in […]

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