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Ajaatasatru
Pilla Bewarse
Username: Ajaatasatru

Post Number: 719
Registered: 04-2016
Posted From: 209.67.156.8

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Votes: 0

Posted on Thursday, August 17, 2017 - 3:44 pm:   

Retailers are biased to Upside. And Options have a Time Premium ( as Kubang said ).

So guess who buys PUTS ?
who buys CALLS ? retailers

so who SELLS these CALLS ?
Selling calls is like the 1st option strategy professional learns. And it has been profitable for ages. Worst case scenario, you just buy the underlying and unwind.

Spreads or any Option legs you setup, would help you play the game easily, and in systematic way... you have better control oevr the game, clear R:R and hence logn run profitability. Institutions rarely deal with naked options, or take directional bets, unless they have like insider info
brahma satyam jagan-mithyä jivo brahmaiva näparah

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