Drawbacks To Our Strategy

Posted on 01. Jul, 2009 by Founder in Blog

Even though we believe writing/selling options can dramatically put the odds of success in your favor, it still requires good, solid market analysis. The difference is really that writing options gives you a larger margin for error as compared to buying options. You don’t have to be as exact as in predicting the market, only close enough.

In addition, the strategy is boring…very boring.  We enter each position then wait until it expires worthless and profitable.  Many traders like the constant hands-on approach of trading a few times a week or even per day. While this type of trading sounds fun and exciting, it can be VERY stressful, require HUGE amounts of capital. We are not saying that this strategy is wrong at all; we just don’t like that as it comes with an increased level of risk as well as stress.

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