By Genia Turanova
Options traders have two enemies: time and volatility.
This is what we often hear when we first learn about this style of trading.
But, while it’s true for options buyers… it doesn’t apply to options sellers.
Rather the opposite. Options sellers benefit from the passage of time and heightened volatility.
Today, I’ll tell you why… and show you a popular method for generating income—one that could also help you time the market.
But first, a little trip back to the basics.
An option is a financial instrument that gives its owner the right, but not the obligation, to buy or sell a security at a specific price during a specific time period (until the option contract expires).