Selling Premium

As traders, we’re always looking for that edge – that one thing that we can exploit that will hopefully pay our bills until it stops working. This morning, I read a lot of chatter on Read more…

In this article, we will be building off the information presented in my last two posts: Constraining Chaos – Part One and Constraining Chaos – Part Two. The main strategy for selling out-of-the-money options will Read more…

In my first article, Constraining Chaos – Part One, I discussed how seemingly random events can be classified in terms of “regular” occurrences and “irregular” occurrences. In other words, there are events which have a Read more…

cha·os – behavior so unpredictable as to appear random, owing to great sensitivity to small changes in conditions. Many events tied to organic and non-organic matter appear to be chaotic: Bees hovering around a hive, Read more…

I often receive questions about how to properly sell puts, what the risks are, how much money can I make, etc. The truth of the matter is, selling puts is a very risky strategy if Read more…

Premium Decay, Time Decay, Theta Decay – Different names for exactly the same thing. As our members know, our core strategy hinges on the fact that this “Theta” variable in an option contract can provide Read more…