Writing Options

If you want to make supplement income from it, writing options is good and easy money when you watch them expire worthless most of the time. Even if the market crashes, by just holding a small position, you would not be completely wiped out anyway. The essence of option writing lies in making many small but probable gains. However, if you go big time, it takes only one big move to kill you out. To play professional, take covered position like doing a spread. Although this severely reduces your profits, as least you sleep better. Beware more of naked puts then calls. A sudden market collapse will leave you little time for actions. Even volatility will turn against you.