sell options

Option selling is a strategy in which traders sell options to collect premium, in return for accepting the risk of being forced to deliver a futures contract to the option buyer at the states strike price.  Short option trading is an income strategy, with relatively high probabilities of success on each individual trade. However, option selling involves theoretically unlimited risk which might endanger the performance of the option strategy in the long run should an option seller find himself at the wrong place, at the wrong time. 

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