Part 3 Introduction to Institutional Trading

100
Income Through Option Selling

Short straddles, strangles, and spreads are used to make weekly or monthly income.

This is one of the most stable use cases of options.

Option selling works because:

Time decay benefits the seller

Most price action remains range-bound

Sellers use probability-based models

Institutions have been doing this for decades. Today, retail traders also follow similar approaches on indices.

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