There is no other option trading strategy that can outshine or even equal the profit generating potential of the sport of writing naked options. The term ‘sport' is used here because those who practice this money making trading technique not only achieve outstanding returns but also have fun in the process. It is a fun, and profitable option trading sport that until recently was mostly played by seasoned and skilled option players. Today this game is played by almost everyone with just a little knowledge of the rudiments of how options operate.

The birth of the options market in recent decades spawned the creation of dozens of options trading systems that is today being used not only by individual options traders but also by financial institutions. Trading strategies, techniques and systems available to the option trader are so numerous today that it would take a whole book to describe each and that would be just a brief description not a detailed explanation. It would be far beyond the scope of what we could cover in this short article. Most of the strategies are based on the principle of buying calls and puts or, variations of this strategy such as the use of spreads. The reason for the popularity of buying calls and puts is quite simple; limited or defined loss against the potential for unlimited and fabulous profits. This is what has driven thousands into the options trading game. But like everything else in life there is always a trade off. While the potential for fabulous profits against limited investment exists the reality of achieving such success is very limited. It's almost like buying a lottery ticket with the potential for winning fabulous riches. Or putting it differently, it's also akin to going to a casino and placing bets on gaming tables with the hope that at the end of the evening you will come out a winner instead of a loser. As we all know there are very few winners in casinos.

Trading strategies, techniques and systems available to the option trader are so numerous today that it would take a whole book to describe each and that would be just a brief description not a detailed explanation. It would be far beyond the scope of what we could cover in this short article. Most of the strategies are based on the principle of buying calls and puts or, variations of this strategy such as the use of spreads. The reason for the popularity of buying calls and puts and its variations is quite simple; limited or defined loss against the potential for unlimited and fabulous profits. This is what has driven thousands into the options trading game. But like everything else in life there is always a trade off. While the potential for fabulous profits against limited investment exists the reality of achieving such success is restricted. It's almost like buying a lottery ticket with the potential for winning fabulous riches. Or putting it differently, it's also akin to going to a casino and placing bets on gaming tables with the hope that at the end of the evening you will come out with more money than you came in. As we all know there are very few winners in casinos and that is why the gaming business offers tremendous profits for the operators.

But one can be an option trader and be in the position of the casino operator. How? By being an option writer or seller instead of a buyer. For every option that is bought in the market, there must be a seller or writer of the option. These writers are the casinos in the options business. By selling calls and puts you take on the role of the casino by takings bets from the option buyers. And since 75 to 80 percent of all options in the market expire worthless, you the seller/writer pocket the money paid by the buyers when the options they bought expire worthless. Option traders who successfully use the strategy of writing put options and call options consider themselves as having found the Holy Grail of Investments. No other options selling system offers the profit potential of the put option writer.

So why aren't there more option writers in the market? For two reasons:

1.There is the general belief that writing options carries the potential for unlimited losses. This has served to scare away the thousands of novice traders and those who have not been long enough traders to recognize the benefits of option writing and the many safeguards available that conquers this so-called risk.

2.For many, options trading has become synonymous with making big profits quickly from small investments. Option sellers on the other hand, do not have the potential for outrageous profits from any single trade, and by not being a get-rich-quick proposition it is less popular to traders who are looking for big returns on their small investments.

It must be noted however, that option writing is fast gaining popularity among serious investors looking to grow their wealth at a steady, consistent and secure manner regardless of market or economic conditions. For those willing to venture into this lucrative field for long term capital appreciation don't let the first reason above frighten you into inaction. There are many ways one can protect himself and conquer the element of ‘unlimited loss' in writing nakeds. The author of this article is one of many successful naked option sellers. He has put out an e-book detailing a trading system that uses a three pronged strategy that trounces the so-called risk of loss to be almost neglible. For more information see the resource section below.

Now is the time to get into this lucrative field for long term capital appreciation. You can begin by getting a copy of this author's authoritative ebook on writing put options and call options.