Why Is Selling Premium a Common Options Strategy? ⎊ Path

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 Relationship between an Option Expiring Worthless and Its Intrinsic and Extrinsic Value?

Why Is Selling OTM Options a Common Strategy for Collecting Premium Income?

What Is the Difference between Triangular Arbitrage and Statistical Arbitrage?

How Does the Time Decay (Theta) of an Option Benefit the Seller?

What Is the Tax Implication of an Option Expiring Worthless?

What Are the Tax Implications of an Option Expiring Worthless?

How Does the Probability of an Option Expiring ITM Relate to Its Time Value?

What Are the Specific Statistical Methods Used to Identify Anomalous Data in Real-Time?