The truth behind selling options for income.

If you know, selling option contracts gives you premium upfront and many option traders actually use this strategy to generate income BUT what's the catch?

I wanted to share this because someone came to me saying that they found a money "hack".

This is how it works:

So let say you sell 1 option contract that cost $5.

(1 contract = 100 shares of the certain stock)

And by selling 1 contract, you can collect the premium for example, which is $5 (meaning $500)

So his genius idea is, since option contracts expires every Friday, we should sell option contracts weekly. So imagine $500 * 4 weeks, that's $2,000 per month.

“And what if we sell 5 contracts in a week to make 10k per month. “

It’s simple money hack until you hit the wall.

I did tried it during the bull market until bear come and slap the shit out of me.

(But because I went naked selling - lol)

So, the only wrong with selling options is that you're doing it without enough capital in your account. (Most accounts will liquidate your position) BUT still, selling options is a good way to make income BUT please don't go all in for the little premiums but forget the cost behind it.

Hope this helps!

#sellingoptions #optionseller #optionmarket #optiontrading #stockmarket