selling options in the summer

Discussion in 'Options' started by poorboy, Mar 2, 2017.

  1. poorboy

    poorboy

    I know the winter months are where all the action is in the stock market.

    For those who make money selling options it seems like it would be a year around thing.

    Am I right about that?
     
  2. luisHK

    luisHK

    You need to cover your puts during summer, or they might get a sunburn.
     
    poorboy likes this.
  3. Last time I checked all the financial markets (e.g. stocks, bonds, forex, futures, options, etc.) traded year round. Money can be made (and lost) any trading day of the year trading any financial instrument. Both by selling or buying, or both at the same time (think credit spreads.)
     
  4. Check and see if selling puts in August is a money maker...
     
    tommcginnis and poorboy like this.
  5. tommcginnis

    tommcginnis

    ("IMO")

    Seasonality in the markets is entirely an accident.
    Specifically, every summer for the last 5 years at least, in May the talking heads opine "'Sell In May And Go Away' is dead!!" and at Christmas, "Whither the Santa Claus Rally?!?"

    In 2017, the "seasonality" is at the change of the month, driven by institutions rounding their books. Not flashy, but there it is. Just take a peek at volumes and premium differences across expirys. Yow.
     
  6. Learn to be a buyer/trader of options -- instead of selling them for the small premium collected;

    huge difference return between the two o_O:wtf:, but also more riskier on the flip side,
     
    ironchef likes this.