Be an Option Seller
Let’s review now what we’ve learned in a nutshell. These key points should crystallize in your mind why being an options seller (also known as an "options writer") can make sense for income generation.Options can be bought and sold just like stocks. They expire at a certain point in time. Selling options brings dollars into your account. Option sellers have a built-in edge: option time decay Once we sell a put or call, our goal is to have the option expire worthless, and when that occurs, you’ve made income. Sometimes, we will buy the option back at a lower price that we sold it, again making a profit.
Add up all these pluses and it becomes clear that you want to be an options seller. Remember, however, the obligation you take on when you sell options. There is risk involved. In order to sell options for income successfully you’ll want to do it in a conservative and safe way. We will be emphasizing covered calls and cash-secured puts as the safest and most conservative way to sell options...but were getting ahead of ourselves. What is needed now is a way forward. We need to continue our learning. We need some conservative techniques. Let’s proceed, then, to learn some Safe Options Strategies and then on to Developing a Plan for implementing them. These modules are available from the navigation bar on your left.
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