The Cash C.O.W. (Conservative Option Writing)

We've just published a new T2W article called "The Cash C.O.W. (Conservative Option Writing)" by Carley Garner.

Quick Summary: Options writing can be a very lucrative strategy for the disciplined trader.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

In this article, the author provides a solid overview of how one can profit from being a seller of options.

This article does nothing of the sort.
It is misleading in the extreme.

And in point of fact, is potentially so dangerous, it should be removed.

The article is good. Selling options is a good game giving you some income month after month. and income upfront as well.

I wish the article had covered more on selling options on indexes and on on futures .

I completely agree with Ducati, the article is rubbish and misleading. At best it's an incomplete story as according to classic option pricing models writers edge does not exist.

Off course it's perfecly ok to have an opinion that differs from mainstream opinion and theory. In an educational story imho it should be clearly stated if an opinion is highly controversial.

The article lures people with little knowledge into an extremely high risk strategy without the appropriate warnings that should accompany such an advise.

A good synopsis of a great strategy.

In the Knowledge Lab there are some very good articles written by people who do seem to want to spread knowledge, then there are artilces written by people who seem to want to spread sales leads.

One can normally tell which it is by the quality of the article and looking at the authors web site (if any).

ducati998 and silent.trader

May I ask both of you-Have you ever sold options or your opinion is just based on some theory?

I am not boasting but I have sold options for last 20 years. Initially I was only selling covered call options on UK shares . Commission was high with UK brokers,so I moved to IB

I sell options on indexes and on futures. In last one year there has not been a single assignment and I have not closed any loss making positions. Return on my capital employed for last year has been about 30%