Don't Go Wrong when Writing Options: Selling Option Premiums Is Easy to Understand But Difficult to Master. As a Strategy, It Is Alluring and Can Be Extremely Profitable, But New Traders Often Make These Common Errors (Trading Techniques‪)‬

In today's volatile and unpredictable markets, option selling is becoming a popular choice among high net worth investors and traders. This has been mainly because of the strategy's high probabilities of success on individual trades, ability to generate reliable income and positive performance in all types of market conditions. But while option selling can be a powerful way to diversify into a non-correlated, non-directional strategy, there is no free lunch. Writing options is one of those strategies that is easy to understand but infinitely more difficult to master. Option selling, especially in commodities, has its own set of risks. Knowing how to deal with them should allay any fears you may have about selling premiums and boost your bottom line.