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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The Binary Options Illusion

Binary Options are like regular options in that they allow you to make a bet as to the future price of a stock. However, binary options are different in that if the “strike price” is met by the expiration date, the binary option has a fixed payoff of $100 per contract. It doesn’t matter if the stock price is a […]

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LEAP Options or regular Options

Most options are traded within 90 Days to Expiration. LEAP Options are just like regular monthly options except that they have a long time to expire. LEAP options are options with DTE of  more than 1 year from today. LEAP stands for Long-term Equity Anticipation Security. Investors will pay a lot of money for options with much days to expiration. […]

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Should you buy Call Options

The stock markets have created exchanges that trade Stock Options. These stock options come in two types. There are call options, which are the right to buy shares of a stock at a certain price by a certain date. And there are put options, which are the right to sell shares of a stock at a certain price by a […]

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