Here is about option expiring worth less, 90 % options puts and calls written out of money to two strike price.
Let say 30 $ stock so options written at 40 3 months ago usually expire worth less.
Funds manager writes them to supplement income.
They sell share some time so strike expire just below the money.
You will see this phenomena in index options often.
Most options are bought as hedge, usually puts expire more worth less.
Here is an example, I want to short QQQQ but I do not want unlimited exposure so as a fund manager I can buy JAN 32 calls and start shorting against it.
Now I am hedged my losses will not exceed more then 32 so in next 25 trading days I make 40 Cents a day I made 10 $ so now if stock is at or above 32 I make more. If it expire worth less I am still ahead.
Second benefit is I am charged less margin or portfolio margin so I can play the game with more shares.
So you need to write calls for price where you want to sell it, if other party making money let him. It is Ok if both parties are making money.
