macrocephalopod

Another way of stating the below: Literally by definition, the changes in the market exposure of a short option position are *adverse*.https://twitter.com/bennpeifert/status/1393931064180043778 …

You get paid an option premium in order to compensate you for the negative convexity of a short option position, for the fact that your potential gain is much smaller than your potential loss, because your exposure grows as the position moves against you.

If you sell an option for a price of zero, you get long exposure to the market as the market falls! You do exactly what the "short options as rebalancing" people tell you that you want to do! But, trivially, you can only lose money on the position, no matter what.

The ONLY reason you sell an option, ever, is for the premium, because you are getting paid enough to offset the risk of those adverse changes in your exposure that the short option position creates.