35% I find that very hard to believe.
Dunno Eddie, but here's a further quote...
Myth #2: Covered Writing is a Good Strategy, because Most Options Expire Worthless.
This misconception is a commonly held belief, but it is illogical, and there are some facts which support the idea that this belief is illogical. If most options expired worthless, then there would be 'excess returns' to be made from selling options. If this were true, then, in a competitive market place, opportunity-seeking capital would rush in to realize those 'excess returns'. To earn these supposed returns, many options would be sold, driving down option prices to the point where excess returns were no longer available. At such a point, it would no longer be true that 'most options expire worthless'.
The fact is, most options do not expire worthless.
From "Options for the Stock Investor" by James B. Bittman, 1996. |
