MOST OPTIONS TRADERS LOSE MONEY AND IT'S NOT FOR THE REASON EVERYONE THINKS!!!
First post here, so let's start with the stat that's wrong.
You've heard that 80% of options expire worthless. It isn't true, and it's the most repeated line in this entire space.
The real breakdown is roughly 55 to 60% of contracts get closed out before expiry, about 10% get exercised, and only around 30 to 35% actually expire worthless.
Somebody took "only 10% get exercised" and turned it into "90% expire worthless," which quietly ignores every contract that got traded out early.
So why do buyers still lose?
A study published in Management Science tracked real brokerage accounts and found that even traders at the 70th percentile lost money. Fewer than 30% came out ahead. The median retail options trader was down around $5,000, which worked out to about 21% of their annual disposable income.
London Business School looked at 2019 to 2021 and found retail lost over $2 billion in premium, most of it in short dated contracts.
It's getting worse too. Options expiring in 7 days or less made up 43% of all retail options volume in 2026, and OCC data puts the buyer loss rate on those at 82%.
Here's the actual reason it happens.
Buying an option means you need 3 separate things to go right:
1️⃣ Direction
2️⃣ Size of the move
3️⃣ Timing
Right on direction, wrong on timing, you lose. Right on direction but the move is too small, you lose. Right on everything but it happens two weeks after expiry, you lose.
The seller only needs one of those 3 to fail, which is a far easier bet to be sitting on.
Then add time decay. Every day that passes pulls value out of the buyer's position and hands it to the seller, whether the stock does anything or not.
You can see it in the win rates. Retail buying long calls and puts wins somewhere around 35 to 40% of the time. Premium selling strategies come in at 55 to 65%.
And the cheap far out of the money contracts everyone loves, anything with a delta under 0.10, expire worthless more than 90% of the time.
A higher win rate is not the same thing as making money. Sellers win most of the time, but when the losses come they're much bigger than any single win. One badly sized position can wipe out a year of collected premium.
So selling isn't free money. It's a different shape of risk, and the edge is small enough that it only shows up if you size properly and keep doing it.
Final thought: that's what this account is for. The seller side. Getting paid to wait for prices you already wanted, on companies you already did the work on.
This is exactly what we teach inside The Assembly, and why we have one of the best track records in this space. We have had people join and make tens of thousands in just a few months. We have been doing this for years.
If you want to win with us, you can join from our bio.
I will send $2,000 ( 2 winners of $1,000 ) to two people who retweet and are following @Slerfsol
Check my page, 100% legit.
Prizes can be $BTC $SOL $KAS or $ETH
To celebrate the holiday weekend, I’m giving $5,000 to someone random who reposts this post (must be following @Pulte and me so we can dm you if you win!)