Option Premium Strategies Pays For Patience
Patience is a virtue when it comes to premium collection strategies. Many traders over trade premium collection strategies by taking small profits or exiting before profits can be realized. Both cases result in small profits or small losses that don't offer opportunity to participate in the most profitable price movements. Price often touches price levels outside of where premium could be collected if the option where to expire at that moment, but exercising patience will often see price levels move back to price levels where premium can be collected. Every trade won't be profitable but defined risk before the trade is even considered coupled with money management will make you profitable if your trading method is sound. Remember that your are selling the transfer of risk for a set amount of time. The longer you bear the risk, the more premium you are able to collect.