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Why Sell Options?
According to a breakdown by the Chicago Mercantile Exchange Clearing House, more than 85% of all S&P options sold during the period 2004 through 2007 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.
Options selling, also known as options writing, provides the opportunity to receive the premium that the option buyer pays. Option writers benefit when the option expires worthless allowing the option writer to retain the entire amount of premium that was received for writing the option, minus any fees or commissions.
The primary advantage of selling options is that the investor has the ability to profit from the decay of the option’s time value. In the long run, the seller of options should potentially have a higher return than the buyer. Selling out of the money options allows the investor to potentially profit from sideways markets, trending markets, and occasionally markets which move against the seller's position.
Please be advised, however, selling options is absolutely inappropriate for
anyone who does not fully understand the nature and the extent of the risks involved and who
cannot afford the possibility of a potentially unlimited loss.
The TimeMeansMoney™ options selling program is designed so that the individual investor can potentially benefit from the time decay aspect of option premiums. The important feature of the Time Means Money program is that the individual investor is in charge. All trade recommendations are ultimately up to you to take or reject. The program does not place trades without the consent of the investor. Instead, the TimeMeansMoney™ program researches and identifies trades with a high statistical likelihood of success, and then with your approval, those trades are placed, monitored, and offset. You are in control.
Option writing as an investment is absolutely inappropriate for anyone who does not fully understand the nature and the extent of the risks involved and who cannot afford the possibility of a potentially unlimited loss. It is also possible in a market where prices are changing rapidly that an option writer may have no ability to control the extent of his losses. Option writers should be sure to read and thoroughly understand the Risk Disclosure Statement that is provided to them.
Is TimeMeansMoney™ right for you?
This premium collection program is for speculators who are at a point in their lives where they can assume some calculated risk. This is not a get rich quick program. This program will identify trades that have a statistically high probability for success. With your approval, we will enter and exit these trades for you. Participants must understand that even with probability on their side, there is a calculated risk of loss on each and every trade.
If you understand that most options expire worthless and the logic of harnessing time makes sense to you, or if you would just like to learn more about selling options, please feel free to contact at us toll-free at 888-325-9300. This type of investment must be appropriate for you. We will explain in detail the risks involved and the suitability of this type of program to your needs.
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