Re: Selling Options Profit /coral

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In Response To: Selling Options Profit /coral / Winseer ()

Hi Coral,

Winseer did a good job explaining risks in the options market. Since I am in education business (my day job), let me offer this analogy. Imagine that you are asked to walk through a dense and dangerous forest at night. In Case A, you are told that your risk of getting hurt is 1% (this is option buying) and in Case B, you are told that your risk of getting hurt is anywhere from 0 to 100% (option selling). Which case would you pick? I personally would go with Case A now. Would you?

As I said before, I went through the B-forrest in my equity-selling-puts days. It hurt a lot. But, hey, maybe I am just stupid and everybody else will be OK.

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Re: Selling Options Profit /coral

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