I've read it on a number of websites that purvey option quotes, strategies, and information. It's been bandied around here on some option-specific SI thread, too.
Whether it's 90%, 76.2% or "most of the time", it's pretty well established/indicated by most option players that GENERALLY writing options is more profitable then buying them.
Why it's NOT true lately and specifically...... is that the market's been UP SO MUCH over the last few years (index-wise, and for NAZ stocks in particular) that recent data is skewed and CALLS (which most people understand, so they buy.....) are doing fairly well on the buy side.
Buying calls in both bear markets and flat markets is a losing proposition, by the nature of what calls are. Therefore, call WRITERS (CC's in flat and down markets) are going to be (mostly) winners.
With time eroding the value of the call everyday, it takes a lot of upside movement to make calls profitable.
Finally, from personal experience, I've lost WAY MORE money buying calls and puts than I have selling them. I don't know if the number is exactly 90%, but for me....it's well north of 75%.
Regards,
Steve |
