Popular belief: 80-90% of options expire worthless therefore it is better off being a net seller that a net buyer of options at any time.

How many times have you read this? I know I have read or heard it dozens of times. “80% of options expire worthless therefore it is better to be an option seller”. I trade these things for a living and this statement has confused me. My first thought was how can it be possible? If you consider that at any one time about 50% of all options are in-the-money and 50% are out-of-the-money, and only out-of-the-money options can expire worthless, then could not the figure be closer to 50%?

Read the whole article at: ProTraderDigest