At first glance, selling options can look like a great way to earn steady income. The idea is simple: you collect premiums upfront by betting that the options you sell will expire worthless. If that happens, you keep the premium and walk away with a profit. It sounds easy and low-risk—almost like free money. But behind the promise of consistent returns lies a level of risk that many underestimate. One of the most infamous examples of this is the collapse of OptionSellers.com , a firm run by James Cordier , which blew up in spectacular fashion in November 2018. This article breaks down what went wrong and the important lessons every trader can take from it. What Is Option Selling, and Why Is It Risky? Selling options means writing contracts (calls or puts) and receiving a premium in return. You're essentially making a bet that the market won’t move past a certain price. If you're right, the options expire worthless, and you keep the money. For example, if you sell a call o...