To continue my previous post, the beauty with options is that you can play either side. You can be the gambler at the slot machine (buying options), or you can be the casino (selling options). But you have to be careful because, unlike casinos that make good money on slot machines, option sellers have no “house” advantage in the long run over option buyers. It is tempting to start playing the casino and collect option premiums. However, sooner or later, an option you write will blow up in your face and wipe out all your profits.
