Secret 45TIME—THE SECOND ECRET FOR OPTION WRITERS

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You probably have already discovered the second secret:

time. Only write options that have a small amount of time before

they expire. If you remember, you should never hold options in

the last month before expiration. For the writer, write options

that have less than one month before expiration.

Avoid writing options that have more than two months before

expiration. Option premiums collapse during the last month

to the advantage of the writer. Your goal as a writer is to stay in

an option position as short a period of time as possible. The more

time you give the position, the more chance you have to get

bitten.

You probably have already discovered the second secret:

time. Only write options that have a small amount of time before

they expire. If you remember, you should never hold options in

the last month before expiration. For the writer, write options

that have less than one month before expiration.

Avoid writing options that have more than two months before

expiration. Option premiums collapse during the last month

to the advantage of the writer. Your goal as a writer is to stay in

an option position as short a period of time as possible. The more

time you give the position, the more chance you have to get

bitten.