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Options Trading Strategies Expert Tom Sosnoff Exposes Fact from Fiction with Options Trading

Money Tree Investing

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Option Seller Proponent - Is There Any Good or Bad?

The cost of the premium is much less than the actual cost of a call. If you're selling an option, then you win with two of those three outcomes. As an option buyer, you want to be in the option as little as possible. It really depends on your strategy. I know some people who are retired who do this kind of for fun, as a hobby. They will have a portfolio, and they will write covered calls, off them. This doesn't mean you 100 % of your portfolio into options. That's where you can lose a lot of money and get really dangerous territory.

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