Everything You Wanted To Know About Theta!
Are you an option trader?
If so, then you better know about Theta, i.e., Time Decay.
Time Decay (Theta) is the concept that describes how & why an option contract will lose value just because time is slipping away to expiration.
And Theta is not constant, as it gets larger the closer it gets to expiration.
Also, Theta is largest for at-the-money (ATM) options. So if you're an option buyer or seller of short-dated, ATM options, you will have drastically different profit/loss profiles.
In the first video below, I will explain everything you wanted to know about Theta (time decay).
And, in the second video below, I dissect the stock charts and indexes to see what happened over the last few weeks of trading, and what may lay ahead. This is what I call my "Saturday Synopsis". It can help improve your own results.
Just click below to watch the videos:
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Have a great week!
Until next time...