Let's remember an important rule of option trading, which was voiced in one of the past lessons. If time affects our position negatively, means, minimum time should be in position! (time is against us). In this case, time works in our favor..
An option is a contract, which provides for the right of the option holder to buy (Call) or sell (Put) the underlying asset in the specified period and at a certain price, this price is called "strike".
The obligation of the option seller is, to sell or buy this asset on the option exercise date at a specified price.
Expiration period How to choose the expiration period when selling options? There are different points of view on this question.: 1. sell options as far away as possible, motivating this with their greater premium and, respectively, the opportunity to get more potential profit from the transaction 2.