I have tried my hands in selling bear call credit spreads/ bull put credit spreads in the US market before to earn some premium income using time decay but the decrease in the value of the US dollar often reduces or negates the return. The occasional big moves which results in the prices moving out of the strike prices really sucks. This strategy indeed sucks. A classic example of low probability of losing but big consequence when one loses. I condemn it.

 

Having said that, Warren Buffet has been known to sell options for the premium too.

(Taken from his 2008 letter to shareholders.)But what is suitable for him may not be suitable for a small fry like me.

 

 

Another thing i  contemplated was to own US shares so as to be able to sell call options and earning additional income, on top of the usual dividends and capital appreciation. But alas, damn it, im ...