Just For Thinking ...
Majority of these options will expire worthless. Similarly, majority of term, accident and travel insurances will expire worthless too.
So is selling weekly options for income is same as collecting insurance premiums as income by insurance companies e.g. on term, accident and travel insurance?
Insurance companies are working on a very large number of premiums collected to mitigate their risks and will be consistently profitable over long run due to the Law and Survival by Large Number.
Is selling options on weekly basis a fairly large number e.g. 52 per year or 520 per decade so that we can statistically mitigate risks and be consistently profitable over long run?
Is collecting betting from selling weekly option same as collecting premiums like insurance?
It is not wise to assume that weekly buyers of options are a bunch of foolish players coming into the market place to give you free lunches week after week.
"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder
小米汽車|小米SU7熱賣 小米汽車F碼都有得炒、最高見3萬元人幣 – 香港經濟日報 – 即時新聞頻道 – 即市財經 – 股市
-
小米SU7的F碼出現炒價,最高升至3萬元人民幣針對小米合作或投資企業提前進行過SU7意向登記的員工,小米統一通過短信發放F碼F碼有效期限為24小時,持有用戶可優先定購1台SU7創始版小米(01810)
Read More
1 hour ago
agreed, you cannot assume its sure income.
ReplyDeletehowever, those experience traders, like myself, are using the same idea, not necessary must through options, to make a living.
sufficient capital and risk control is important.
Agreed with Coconut. Risk Control is very important in options selling. Cheers!!
ReplyDelete