Does the option selling system guarantee profits or capital appreciation? How about when the economy goes into recession and the markets are depressed?

Answer

Nothing is guaranteed in this life except death and taxes. Even real estate, which is regarded by many as the ultimate sure thing when it comes to appreciation values, has its downturns as demonstrated in 2008 when the real estate market went bust. I will be honest and say that in a situation where the stock market goes in a swift and deep decline option selling may suffer similar consequences as any other investment. I will hasten to add though, that the negative impact of a long and deep recession will be less for the option seller than if he were in any other investment, including safe harbor mutual funds.

Updated on May 14, 2018

Original Article:

Stock Options Trading Is Like Owning an Online Casino
By Daniel Mollat
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