Option Selling: It’s a new wave: Millions of investors are starting their own business by learning to sell options using deep-discount on-line brokers. Selling commodity options is one of the fastest-growing and popular strategies in this category because there are so many advantages over selling stock options.
Selling commodity options is an investment method that is not correlated with the huge ups-and-downs of the stock market’s volatile moves. The mind-set for successful option selling is a juxtaposition to the old notions of stock investing. Past methods of “buy low and sell high” leave your funds at the whims of the market. The country-style humor of the 1930’s celebrity Will Rogers, put it this way: “Buy low and sell high. If they don’t go up, don’t buy them.” It’s time for a fresh start using a popular and modern strategy.
The Business of Selling Commodity Options
Almost 85% of options expire worthless.
Collect much higher premiums than stock options.
Low margin requirements.
Seasonal price patterns of many crops can be used in price forecasting.
Trading on-line using discount commissions can lower risks.
Use the same math that insurance companies and casinos use to collect option premiums.
Non-correlated to Stock Market moves.
This business travels with you anywhere there is an Internet connection.
Learning this strategy takes time and effort; it isn’t for everyone.
It can be risky; learning money management is vital to success (discipline is required.)
Your positions have to monitored often.
You must learn to both expect and manage the losing trades– as a cost of doing business.
You Should Demand a Reward for Your Efforts
Personal investing can be so discouraging. You do your research, put your money at risk, and then circumstances beyond your control and stock market volatility can set you back without warning. When you learn to invest as a business, you plan your money-management to include minor setbacks as a cost of doing business. Selecting only ultra-low delta options and pre-determined risk/loss rules are an integral part of your strategy. You must have a plan to keep profits that includes stringent controls on any losses; this is the only realistic way to protect your account capital. Your business requires a very specific plan; hope is not an investment strategy. A responsible business owner has every right to expect to be paid well for her/his good works and talent. If you aren’t getting the rewards for your efforts, go do something else and you will be better for it in many ways.
Learn to Sell Options – Your Start-Up Costs
Start up costs are part of any new business. Fortunately -while learning to sell options – the major requirement is only your effort and time. Learning to sell commodity options can take a few weeks up to several months but the payoff can provide you with a lifetime of second income. You gain a skill that lasts a lifetime and you can work as much or little as you want – and work anywhere and anytime there is an Internet connection.
“Last year, 43 percent of employed Americans said they spent at least some time working remotely, according to the survey of more than 15,000 adults.” – source: New York Times This figure was only 19% in 2003.
Creating a Second Income Selling Options Isn’t for Everyone
When someone waves a slogan suggesting fantastic returns and implies no risk and almost no work is involved, you are in the presence of a modern-day snake oil salesman. You should run, not walk, the other way as fast as possible. Selling Commodity Options requires an amount of study and work; there is no such thing as “free lunch.” You should never invest your hard-earned money into any venture without researching the idea. There are many ways to make money but finding the work you enjoy and have some aptitude for is the key to making it work.
We’ll provide you with a full five months of our own research, commentary, training articles, charts, and market fundamental research to help you get started. I’ts all FREE with our 60-Day trial of the newsletter Time Farming Training Bulletin. Most investors have never heard of this strategy. Here’s a chance for you to see first hand how to let the time-decay of far Out-of-the-Money options create opportunities for a reliable second income.
You get three months of back issues plus another two months of real-time (same day) issues, that’s 5 MONTHS of our trading list, commentary, analysis, and charts – all for your review. You will learn exactly how and why we recommend and manage each trade – so you can learn faster. This is specifically for small/med investors trading online. No credit card to register, only your name and email address is required. Not everyone can and should learn to sell commodity options, but for those who have the ability and interest, the opportunity is there. Check out the many articles on our blog: read more...
There is an easier way to invest if you take the time to learn about it. Check out more of our articles.
This type of trading is risky and is not for everyone.