FACT: Approximately 80% of all Futures Options Purchased Will Expire Worthless*
One of the key components of a futures option premium value is time to expiration.
Unfortunately for the buyer of an option, time value is always ticking away – decaying away.
Let us show you how to use time decay to your advantage.
Should You Be Buying or Selling Futures Options?
Did you Know? – The time value of a futures option will start to drop at a much faster rate as it approaches it’s expiration date.
Experienced Guidance
Advising investors worldwide in futures & options with a focus on education and discipline.
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We provide futures options traders the ability to establish uncovered short futures options positions.
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Exchange‑direct order routing and user‑friendly futures option order entry available on any device.
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Account plans for those seeking structured guidance as well as self‑directed traders.
OPTION SELLING BASICS
Why many traders consider selling futures options
One of the biggest factors in options pricing is time decay – the natural decline in an option’s value as it approaches its expiration date. This is where option sellers look for an advantage. By capitalizing on time decay, futures options sellers attempt to position themselves to profit as time runs out on an option’s value.
Time Works for You
Options are wasting assets. As expiration nears, time value decays. Sellers seek to position with time rather than against it.
Probabilities
If most purchased options expire worthless, the seller may have a statistic edge when using prudent strike prices and exits.
Slower Paced
Short option strategies are typically longer held positions, reducing the pressure of constant intraday decision-making.
Focus on Probability
No need to pick exact market tops or bottoms. The goal is pick where prices will not go to prior to expiration.
THE TIME WRITER STRATEGY
A structured, risk‑aware way to apply time decay
Select Liquid Markets
Focus on actively traded futures contracts to help improve fill quality and manageable exits.
Choose OTM Strike Prices
Identify key price areas the market is less likely to reach within your chosen trade time window.
Define Exits Up‑Front
Use pre-planned risk limits and time-based targets; avoid holding through major market events.
CHOOSE YOUR PATH
Built for experienced option sellers and motivated beginners
Self-Directed Options Traders
- Account enabled for short selling strategies
- Direct‑to‑exchange routing via InsigniaTrader
- SPAN margins and robust trade tools
New to Futures Options Trading
- Foundational options trading education
- Mentoring and trade recommendations
- Personalized trade guidance
Explore Advanced Futures Options Selling Strategies
FREE EBOOK
Get The Time Writer Option Strategy
Discover how disciplined option sellers align strike selection, time frames, and exits – in his newly revised eBook. It outlines the futures options selling strategies used by many professional futures options traders.
What you’ll learn:
- Why time decay matters and how sellers use it
- How traders think about OTM strikes and trade duration
- High‑level examples of credit and calendar spreads
- Risk considerations every option seller should evaluate
Request your free copy:
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Also available on Amazon in Kindle and Paperback versions
FAQs
Common questions about selling futures options
What makes time decay an advantage for option sellers?
Time decay, or Theta, causes an option’s value to erode as it nears expiration. This consistent decline works against option buyers but can benefit option sellers. By understanding how time value erodes, a seller can structure trades that take advantage of this predictable decay in value, potentially collecting premium as time passes.
Is selling futures options appropriate for beginner traders?
Our profits guaranteed using this strategy?
No. Futures option selling strategies may work in the trader’s favor, but market moves, volatility shifts, and liquidity can lead to losses. Disciplined risk management techniquies are essential in any trading plan.
What are the steps to get started?
1) Download our Time Writer Option Strategy ebook to learn the essential technicques, trade selection and risk management.
2) Review our futures options trading videos found on our YouTube channel. Click Here for access.
3) Determine if you will trade on your own or with the assistance of an experience futures options broker through our Traders Advantage account plan.
4) Sign-up for your trading account.
5) Fund your account and start trading.
Have Questions?
We’re here to help – Connect with a licensed futures broker now.
Ready to take the next step?
Open a futures options account or grab the free eBook to learn more about The Time Writer Option Strategy trading approach.
