This broker-assisted program is designed so that the
individual investor who can assume a calculated risk
of loss can potentially benefit from the same market
dynamics that large fund managers use to collect
option premium over the course of time.
The Time Means Money program
exploits the
time decay
aspect of option premiums, potentially putting you
on the receiving end of the fact that most futures
options expire worthless.
According to a breakdown by
the Chicago Mercantile Exchange Clearing House, more
than 85% of all S&P options sold during the last
three years expired out of the money and worthless.*
* Source: Chicago Mercantile Exchange Clearing
House; Analysis of S&P options sold during the
period 2004 through 2007.
With this fact in mind, it is
easy to understand why, in the long run, the seller
of options should have a higher return than the
buyer.