Most people make money when the market trends. And we know that market doesn’t trend most of the time. Side-way markets are boring and traders felt devoid of profits. One of the ideas to trade a side-way market is to sell options. WRONG! To me, this is the worst time to sell, unless it is a covered call. Selling options during a quiet market is courting death, and that is why most traders warn against selling options in general.
Let me explain.
3 Main Factors of Option Pricing
Those who are not interested in options are unlikely to have read the article to this point, and if you did, I assume you have some knowledge about options and I am not going to repeat what other sites have been explaining about the basics. I will just go through a truncated explanation.
Time Decay (Theta) – The natural advantage going ...
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