Selling Options = Picking Up Pennies On The Highway? – Options Trading with David Jaffee
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Selling Options = Picking Up Pennies on the Highway?

You may have heard this phrase before when it comes to options trading, but is it really true?

David Jaffee with shared his views on whether it's true that selling options is like picking up pennies in front of a bulldozer.

When selling options, it's all about size.  

In reality, the downside of selling options is that you don't actually participate in the upside potential of the underlying stock.

However, as long as you're disciplined, then selling an out of the money put option carries less risk than buying stock. 

Also, consider what other alternatives you have. If you buy stock, your buying power is reduced by about 50% and you have no safety net (each dollar move down in the stock corresponds to dollar-for-dollar loss in your portfolio).

If you buy deep in the money call leaps (buying options), then you're going to tie up buying power for a long period of time and you can only make money if the price of the underlying stock appreciates substantially.

Selling options is similar to acting like a casino or an insurance company.  

Those who claim that selling options is like picking up pennies in front of a bulldozer simply don't understand how to properly mitigate risk.

David Jaffee with does not believe that selling options is similar to picking up pennies in front of a bulldozer with the right options trading strategy and risk management strategy. 

In fact, he believes that selling options is the only way to trade that provides a high win rate, as long as you’re able to take the necessary steps to reduce risk. 

David Jaffee has taught more than 1,500 students how to win up to 98% of their trades by selling options and managing their risk when selling options.  

Learn more at and sign up to receive $400 of free options trading training material.

About the Author David Jaffee

I (David Jaffee) help people become consistently profitable traders while minimizing risk. I graduated from an Ivy League University and worked at some of Wall Street's most successful investment banks. Subscribe to my YouTube channel for valuable videos - BestStockStrategy YouTube Channel​. Finally, if you're looking to Land a Finance Job, then I've put together the best step-by-step course at My personal website is

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