Option Selling vs Option Buying: 10 Huge Benefits of Option Selling Over Option Buying
If you are among those 90% loosers in Options Buying, then you need to understand Selling Better.
As an Option Seller, you have more winning probability and Advantages.
1. Default Risk Management: An Option Seller's Risk is automatically managed with position sizing a single lot costs so much
2 . Time is on Your Side: As an option seller, time decay becomes your friend.
3. Increased Probability of Success: Statistically speaking, a significant number of options expire worthless. As a seller, you can benefit from this phenomenon.
4. Potential for Consistent Income: Selling options can provide a steady stream of income if managed prudently. It can become a reliable strategy for generating profits.
5. Flexibility and Adaptability: Option selling strategies offer more room for adjustment. You can employ various techniques to adapt to changing market conditions, potentially mitigating risks.
6. Market Neutral Positioning: Option selling can be conducted in ways that allow you to profit from various market conditions, not just when the market is bullish.
7. Benefit from Volatility: Moderate volatility in the market can be beneficial for option sellers.
8. Risk Management Tools: Various strategies in option selling allow you to manage risks effectively.
9. Psychological Advantage: Selling options often requires a more disciplined and strategic approach.
10. Easy Adjustment: You can adjust your positions easily to avaoid losses.
While the benefits of option selling are significant, it's crucial to note that every trading strategy involves risks. Take Decisions Wisely.