February 12th, 2009
Why Manage Your Risk When Selling Options
Most people start selling options because of the high success rate. But success rates are not everything, you also need to manage your risk.
Most people who enter the option selling world do so because it comes with a high probability of being correct. Most people see that they can make money 80% of the time and decide that this is what they should be doing.
Few realize that even with such a high success rate you still should manage your risk. Just being right 80% of the time isn’t going to make you an automatic Stock Market Trader.