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 Pittsburg, Kansas | I have successfully sold calls covered by stocks (covered calls, stock market).
Writing the positions, you become the insurance issuer and claim the premium instead of paying it out. As long as the premium you receive reflects properly the risk involved, you should be the one making the profit. At least the odds are in your favor.
Look who writes the majority of options and see where the real money is made. They don't do it for their health. As long as a person has the means to properly price for risk (I don't), and can fund the risk levels, selling (writing) the options is where the money is made. That is why they tell us farmers options are such a good deal for us to use. They make big money off us. Writing would be the place to be if you are a financialization expert and have the depth of resources to back your position. I'm not and don't. I'm a farmer.
John | |
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