You only wanted them as insurance. No one ever wants to collect on their insurance because that means something bad happened.
Market makers and other traders are happy to sell these options because they know the odds are on their side and that the options will most likely expire, worthless.
So you see, both sides know that the options will expire. And they are happy with it.
Options were then introduced on stocks in the hopes of increasing trading and commissions. Boy, did that pay off for the stock exchanges.
But that’s when speculators jumped in and started promoting options as a way to get rich. And while it is entirely possible to hit a home run with options once in a while, over the long term, buying options is a losing game.
So how do you overcome these obstacles?
You get on the other side of the fence and put the odds in your favor.
That’s exactly what this page is all about…