Comment on Basics on Options Shorting/Writing
commented on
28 Jul 2014, 11:07 PM
Dhaval, time decay is only one aspect of option writing, but value of option going down also depends on volatility. If volatility picks up, both the premiums can go up, even when there is a time decay. But yeah, this is relatively a safe strategy, but if market moves in one direction very fast, it can still cause you a loss.