The thought behind Trading Non-Directionally through Selling Options and keeping the Premium collected is based on identifying certain places on a price chart that are not likely to be reached and Sell Options with strike prices beyond those places.
The Options contracts sold would be Out of Money (OTM) and they would remain OTM until their expiration date as long as the Market price does not reach the Strike price of the Options sold within that given period of time.
If all of the above was true, the trader would have collected the Premium for selling those Options that would expire worthless, allowing the trader to keep that previously collected Premium.
The Un-FIlled Orders (UFOs) concept behind the AutoUFOs™ app could be useful to theoretically identify certain places on a chart that are likely or unlikely to be reached anytime soon.
Keeping in mind the concept that when a market enters a UFO the expectation would be to see a reaction or a bounce from the price region adding duration to a trade. Think of a case where those UFOs are quite far from the current available price or cases where there are multiple UFOs upon UFOs. In this instance it would be reasonable to expect that a market with these characteristics is unlikely to surpass any of those UFOs anytime soon and therefore an Options trader could capitalise on a setup like this by Selling Options where price is unlikely to reach.
In addition to this, time passing would lead to a decay of the Options Premium helping this type of trade to accumulate profitability little by little, keeping in mind that nothing stops time from passing.
Furthermore, think in terms of probability and ask yourself the following question: what is higher probability? To determine with precision where a market is going turn and where it is headed to, or to determine where a market is not likely to go within a certain amount of time?
If you would rather choose the second case you may be interested in observing the following illustration that shows an advanced Options Strategy commonly known as Iron Condor where a profit would be produced from time passing while a Market trades within Range or sideways. In other words while a Market remains trading within a Range defined by Red UFOs and Green UFOs causing its price to remain range bound during a given period of time as a consequence of the potential bounces produced when its price travles from UFO to UFO (Green-to-Red or Red-to-Green).