The term “selling premium” refers to selling options. There are many benefits to selling premium as opposed to buying premium, but there are environments where each strategy can flourish.

Selling premium give ourselves the best opportunity for success. From a price direction perspective, when selling premium we can win in three scenarios: if the stock price stays the same, moves against us slightly or moves in our favor. When buying premium however, we can only win in one scenario, and that is if the stock price moves in our favor fast enough. Bringing IV into the equation opens up another dimension in which we can profit. In low IV environments we may look to buy premium and hope for an IV expansion, and in high IV environments we look to sell premium in anticipation of a contraction in IV.

If you would like to have an access to all premium rooms, we do offer a great package at an attractive discount rate. Send Support@seekingoptions.com an email!