Have you been following the Bitcoin ETF news? It was supposed to open up the market and set Bitcoin on a course to $100,000 or more.
But about 2 weeks ago, almost immediately after the ETFs were approved…
Bitcoin started heading down… down… down…
So far it’s down 15% and no one knows when it’ll hit bottom.
Honestly, it could eventually hit $100,000… but my point today is this:
If you’re tired and burned out from chasing fads, there’s a timeless technique that I want to share with you.
Even if you decide to chase fads (I’ll admit, they’re fun once in a whle), this can form a rock-solid cornerstone of your trading.
Selling Premium
Most people buy options. I can write a book on why that’s like buying a lottery ticket.
But long story short: When you buy options, you’re betting on a specific result within a specific amount of time.
Every day that ticks off the calendar is working against you.
You basically have to get 2 things right:
- the price the stock will go to
- the time by which the stock will go to that price
It’s incredibly hard. Some statistics say that more than 80% of options expire worthless.
And that’s bad, because when an option expires worthless, the buyer of that option loses the amount they paid for that option.
But there’s another side to this tale. And not a lot of people know about it.
Because for every option that expires worthless… there’s also an options seller who collected money for selling that option.
And here’s the best part: You don’t have to be a bank or a big hedge fund to sell options.
So why do I recommend that everyone discover how to sell options?
Remember, when you buy an option you have to get 2 things right: the price and the time.
But when you sell options, you can get both of those wrong and still win!
In fact, the stock price can go up, sideways or even a little down.
Because remember: while time is working against an options buyer… when you’re an options seller, it’s working in your favor!
I’ve spoken a lot about selling options here in the articles on this website, but if you want to cut straight to the chase, I want you to go here and watch this video.
Not only am I talking about how I sell options. I use a database of stocks that have a 10 year track record of rising on very specific dates to gain an even bigger edge.
Trade well,
Jack Carter
