re: debono I, like most option writers, do it for income each...

re: debono I, like most option writers, do it for income each month. I actually have a far less riskier approach than most derivative traders. The option taker has quite a low probability of winning. I write few contracts per trade and always hedge my positions to reduce risk. How many derivative traders do that? Not many! I am one of four traders in my chatroom who consider option writing as their source of income. We are not really trying to get capital growth, but wont complain if we do. Risk comes when you get greedy. It is quite possible (though far from easy) to get a 20% return on your money writing options each month. Most of us aim for between $5k and $10k per month. The higher the income sought the greater the risk. Careful risk management and money management is imperitive. My first month was a disaster as I did not see the need to hedge. A few nasty lessons later, and I am a much better trader for it. You cant eliminate risk, but you should take every possible step to minimise it.
It is stressful and challenging, and there is no room for ego, denial or complacency.
Nobody should attempt this as an occupation until you have concored warrant trading for a few years and have been consistently successful.