> decided that shorting calls and puts would work well. The time value decay seems to work in the investor's favor
Yeow that could go wrong very easily. For shorting a call/put option, the maximum amount of money you can make is 100% when the contract expires worthless. However, you can potentially lose way more than 100% if the contract ends up being worth a ton of money.
This could bankrupt you if you don't know what you're doing, especially if you're trading with volumes where you can buy houses off the profits...
Yeow that could go wrong very easily. For shorting a call/put option, the maximum amount of money you can make is 100% when the contract expires worthless. However, you can potentially lose way more than 100% if the contract ends up being worth a ton of money.
This could bankrupt you if you don't know what you're doing, especially if you're trading with volumes where you can buy houses off the profits...