Think about it 80% of all options on the market expire worthless. That money has to go somewhere. It goes to the person who sold it. They walk away with the premium.
There are many benefits to option selling rather then buying options.
1. The majority of stock options expire worthless, 80% of them. And with technical analysis you might be able to improve that.
2. Time decay benefits the seller. As expiration comes closer the value of the option goes down. As long as the option stays out of the money you can make money just by the time value of the option expiring.
3. The stock does not have to go in any 1 direction. If you sell an out of the money put on a stock it does not need to go up for you to make money. It can go up sideways or even down a little bit and you can still have the opportunity to make money.
Great option sellers can often generate a good monthly income. In fact the best can generate a 10% a month income consistently. That really helps compound interest add up.
