The Art And Science of Selling Options 

Selling options is both an art and a science.

The “science” is becoming familiar with how options work

This involves understanding, to some degree, time decay, expiration periods, and volatility.

The “art” is having an insight into trading options that can only be gained by experience.

art and science of selling options

This includes how to get the best prices for option orders and which strategies to use in various market conditions.

After trading options for a while, you learn to love the process and your art form improves.

For me, option trading is a mentally intriguing and engaging type of art.

It sure doesn’t feel like work.

It’s more like play, and it reminds me of this passage I read some time ago that goes something like this:

Work & Play

Once upon a time, there was a man who paid a visit to his talented artist friend.

On his first visit, he found the artist sitting quietly in a chair, gazing into the distance.

Curious, the man asked, “What are you doing?”

The painter, with a serene smile, replied, “I’m working.”

The next day, the man returned to the artist’s studio and was surprised to see his friend in a frenzy, vigorously applying paint to a canvas.

He inquired, “Are you still working?”

The artist, now with a gleam of joy in his eyes, responded, “No, my friend, now I’m playing.”

This is how I approach my options trading. Yes, there is “work” involved and it’s not as “passive” as people make out. But, it sure is fun when you can consistently make money every month from the so-called Wizards of Wall Street!

So, my goal with Dividend On Fire is to give you as many rules and concepts as possible to improve your knowledge in the area of “science.”

The art of selling options is cultivated through your own trading experiences.

For this reason, it will always be best to trade as small as possible at the beginning of your options trading journey.

Trading the Half In Half Out method when starting is not a bad way to begin.

I think it was Charlie Munger in one of his seminal speeches said:

"You don't even need to be the smartest guy in the room or have all the best attributes to win long term. You just need to be consistent. It's very hard for someone NOT to be successful if they are consistent."

Consistency in option trading is not easy. As humans, it’s one of our most difficult virtues because we are so attracted to novelty.

But, consistency over a long enough time horizon always wins.

For us option traders then, the only way to practice consistency is to stay in the game and keep on improving our “art”.

 

Happy investing!

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Kevin S

Kevin S

Greetings, I'm Kevin! I am now a full time options trader and investor. I am thrilled to have the opportunity to share my knowledge and expertise with you. My objective is to assist you in navigating the complexities of option trading, regardless of whether you're a beginner or an experienced trader looking to enhance your skills. I'm excited to accompany you on your journey to mastering the art of option trading. Let's make this year an extraordinary one for you!

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Kevin S

Kevin S

Greetings, I'm Kevin! I am now a full time options trader and investor. I am thrilled to have the opportunity to share my knowledge and expertise with you. My objective is to assist you in navigating the complexities of option trading, regardless of whether you're a beginner or an experienced trader looking to enhance your skills. I'm excited to accompany you on your journey to mastering the art of option trading. Let's make this year an extraordinary one for you!

About DividendOnFire.com

Welcome to Dividend On Fire, we are a site dedicated to options trading! We specialize in helping investors generate passive weekly or monthly income through selling cash secured puts and covered calls.

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