Which one is "better" is really just a matter of opinion, and my opinion is to sell more options than you buy. Here's why… Buying options can give you a great risk to reward (which is what makes "buying" them so appealing) but, there are still a lot of concerns around buying instead of selling options…
Usually when you're buying options, Direction, Distance and Time are your biggest enemies! One of the biggest issues is that the stock you're trading MUST move in order for you to make any real money. Not only does it have to move, BUT it also has to be moving in the right direction. Not only that, it also has to move in the right direction before your option expires…. And not only that (as if that wasn't enough already) but it also has to move in your direction fast enough AND far enough to reach profit region before that expiration date hits. It's a lot, right?! And what all of that adds up to is a generally low win rate. Not cool at all!
On the other hand, we could just sell options. I'll be honest… when you're selling options, you typically don't get the most attractive risk to reward (which is why some many new traders shy away from selling) BUT what you gain in return is much more valuable and profitable in the end! Why? Because selling options allows you to have Direction, Distance and Time working in your favor.
Usually when you're selling, your stock does NOT have to move at all in order for you to make money. You're LITERALLY just making money as time goes by, regardless of what the stock is doing. If the stocks moves in the direction you think it will, if it doesn't move at all, and even if it starts moving against you… you can still be profitable selling options. And you know what all of that adds up to? High win rates and consistent income. Check out our Trading With Insight course to see how we're buying and selling options - www.TradingWithInsight.com
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Learn How We Analyze Stocks To Find High Winning Setups, And As A BONUS, Learn How To Use Options To Trade Them For Income - https://TradingWithInsight.com
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