The Option Selling generates positive income cash flow from portfolio in almost any market environment using one simple strategy - selling deep out of the money options.
When option is sold out of the money, the entire value of that option is in the time value.
As time passes, all other things remaining constant, the option will gradually lose it value.
It is this main reason Time Traders follows a strategy of selling deep out of the money option. If underlying contract's price does not move to the option's strike price by expiration, the option will have no value and expire worthless.
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