Saturday, August 30, 2008

Why Option Selling is your key to success?

It is the best way to put the high probability of profit on your side.

The disadvantage of being an option buyer is if you are wrong on the direction (make losses) and time decay. (value decay & expired worthless)

For the option seller, sell the out-of-money (OTM) option. The probability of hitting the target is very low. 80% of the options sold will expired worthless. Thus you can safely collect your premium profit and can repeat the steps again & again.

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