General Options Blog

Adding Premium Selling Feature Exclusively for Diamond + Service!

One of my favorite strategies is selling premium. Whether the market is stagnant or volatile there are always opportunities to take care of time decay. Selling premium also provides insurance for other more speculative plays and can help bring in constant cash flow into one’s account. Starting next week, every Friday I am going to put out around 3 premium selling trades for the following week. The target will be to make around 10-20% on each trade; so if the spread has a $1 width then I would aim to find spreads to sell for $.10-$.20. The trades will either be playing for a range or will be directional. Given that each trade will only have one week until expiration, time decay will be on our side, and given how far OTM the trades will be I expect most of the trades to be profitable. Given that the options will be OTM it will give us time throughout the trade to re-evaluate should the trade no longer offer a good chance of probability.