I have been keeping something from you for 6 months.
I like to share openly with BFP readers but I decided not to disclose this until I am ready. Don’t get me wrong. This is to ensure your safety because it is a risky endeavor that I do not want to entice you into doing it.
The truth is – I have been selling naked options for income. Selling naked options means I am betting the options price will go down and I do not own the underlying assets. There are a few factors that affect options price such as the underlying asset’s price, volatility and time decay.
Statistics show that most options expire worthless by their expiry dates. That is why selling options has high probability of winning.
But high probability of winning alone does not mean it is profitable. It is about having a positive expectancy and this ...
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