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
Posts
End of Year 2024 Update: Buying more Business Trust and REIT For Dividend
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As said in my past posts, it is likely I would purchase more Asia Pay TV
Trust (APTT). I did just that. Other purchases were UnitedHampshire REIT
and Yan...
4 hours 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