Options 101

How to & what not to do

First, the bad news.  80% plus of all options expire worthless.  Yup, worth $0.  Knowing this, why would anyone buy something that has such a high probability of being worthless?

Hopefully, you quickly thought “wait the seller of those must be happy?” Yes, selling puts and calls, in our view, is a terrific strategy done properly. But we preface, which w…