In this book, Dave briefly explained what are Options and even show you the procedures to place orders. What is interesting and very different from most trading books, is that he advocated the selling of Options. Instead of being a buyer of Options, you actually assume the role of a financial institution when you sell Options. No other instruments are able to let you be the house, where the odds of winning is on your side.

Why sell Options?

Options consists of time value and at the expiry, it becomes worthless. Statistically, 80% of the Options expire worthless and hence, you win most of the time as an Options seller. Time is on the side of Options seller. If you look at the time decay of the Options in the figure below, you would notice that the rate of decrease in the Options price increases as it gets closer to …