I mentioned I took up two courses on options selling. They were both conducted by our local traders who have been very successful in this niche area.
The first course I took was on stock options. It uses a very unheard of technique called short guts, which generally means selling in the money options. I was the only participant of the course and one day lasted a full day. Basically, the idea behind this form of selling is to create a window to trap the underlying stock which you intend to sell options on it. Call options on the low side, implying in the money call options and put options on the high side, meaning in the money put options. The equivalence of it is actually the short strangle strategy.
Though the course was taught on stock options, I expanded the idea to ETF instead, to give myself the added safety net. Stock options though more juicer, the risk is definitely there. You never know when the stock will go burst!
Selling options on ETFs prove to be a success for me afterall. I love the technique very much.
Wild dreams
