Hello everyone...!!!

Lets understand basic question that is , what is an Option?

Option is like buying an insurance. You buy insurance to safeguard your property, your life, your car, your home and numerous other essential things. Similarly, buying an option in the share market is like buying an insurance policy to safeguard your shares. If you need to buy option in share market you need to pay premium also.

Let us understand how you can earn through selling options. What do insurance companies do? They simply collect premium. That is what you need to do. Sell option and collect premium month on month. What you need to do is to sell share options and collect premium. When during end of the month there is no claim, you keep that premium amount. Like insurance company you will also have certain claims. These are termed as risk associated with option selling. These risks and their management and mitigation will be a learning bit for you.

Compare to buying an option selling of option has far more advantages like

Advantage 1: The CHANCES are constantly in your FAVOR

Advantage 2: Accumulated Profits can be SIGNIFICANT

Advantage 3: Time is on your Side

Advantage 4: Taking Profits becomes STRAIGHTFORWARD

Advantage 5: Flawless Timing is no longer VITAL

Advantage 6: Numerous techniques of RISK CONTROL

Advantage 7: You do not have to decide on SCRIP TREND anymore

Though there are few drawbacks, which can be easily managed by administering risk. These drawbacks are

- Unlimited risk if the position is not settled

-Profit is restricted to premium accumulated

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