Skip to main content
Learn

Why Is Selling Premium a Common Options Strategy?

Selling premium profits from time decay and the statistical edge of options expiring worthless.
Greeks.Live22.11.25

Why Is Selling Premium a Common Options Strategy?

Selling premium is a common strategy because it profits from the statistical edge provided by time decay (Theta) and the overestimation of future volatility (Implied Volatility). The seller collects the premium and benefits as the option's value erodes, offering a high probability of small, consistent profit.

What Is the Primary Risk Associated with Trading Deep Out-of-the-Money Options?
How Does the Probability of an Option Expiring ITM Relate to Its Time Value?
How Can a Trader Profit from Time Decay?
At What Point Does an OTM Option Become Worthless?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.