Sell a credit spread. Risk $855 to collect $145. The market says you will win roughly 78% of the time, and you will. Run that trade one hundred times and you lose $7,500.

Now close your losers at twice the credit received instead of letting them run to maximum. Same stock, same strikes, same probability. The identical trade makes $4,930.

That calculation is in Chapter 9, and it reframes everything after it. Your entries matter far less than you have been told. Your exits matter far more.

**Second edition, rewritten and more than doubled in length.** If you read the first edition and wanted more worked examples and the math shown in full, this is that book.

What this book actually is

Selling options carries a real, measurable edge. Most contracts expire worthless, and the ones that do not are priced as though danger is slightly more likely than it turns out to be. That gap is called the volatility risk premium, and it has paid patient sellers for decades.

The edge is also small enough that four undisciplined trades will erase a year of collecting it. Which means this is not really a book about strategy. It is a book about executing a repetitive process correctly several hundred times without getting bored, greedy, or scared.

Inside the second edition

Five core strategies with full worked arithmetic: covered calls, cash-secured puts, the wheel, credit spreads, and iron condors. Every example shows the premium, the breakeven, the capital required, the annualized return, and the scenario you were hoping to avoid.

Where premium comes from, why extrinsic value scales with the square root of time, and what that means for choosing an expiration.

The Greeks as a seller needs them, with particular attention to gamma, the mechanism that turns a comfortable position into a painful one in an afternoon.

Position sizing and the mathematics of ruin. Why a strategy earning one to two percent a month cannot survive a large drawdown.

A full year of trading on a $50,000 account. Sixty-two positions, month by month, losing August included, and an honest accounting of why roughly half of collected premium survives to become profit.

Taxes, including the Section 1256 sixty-forty treatment on index options, worked in dollars.

Built to be looked at, not just read

Sixteen charts and diagrams drawn from the book’s own worked examples. Payoff diagrams for every strategy with the real strikes marked, the decay curve with the dangerous final weeks shaded, and the full-year equity curve with the drawdown annotated.

Nine data tables, plus a four-page cheat sheet at the back: an eleven-point pre-trade checklist, the arithmetic to run before you click, nine management rules, and the Greeks in one line each. Print it and keep it next to the screen.

Fully revised for 2026

Every statistic replaced with data through the second quarter of 2026, including the elimination of the Pattern Day Trader rule in June 2026. It removed the $25,000 minimum equity requirement that had governed small accounts since 2001, and it cuts in both directions.

Who this is for

Investors who own stocks and have never understood what the options tab is for. Traders who have sold a covered call or two and suspect there is more structure here. Anyone who tried options, lost money, and wants to know what went wrong.

Not for anyone seeking a system that removes judgment or guarantees income. No such thing exists, and this book says so on the first page.

Scroll up and start reading the opening chapter.

"Synopsis" may belong to another edition of this title.

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Option Selling for Beginners

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Synopsis