Have you found strategies that make use of the decay of an option's theta that are attractive but you can't stand the associated risk? At the same time, conservative strategies such as covered-call ...
Steve Chen focuses on the delta and theta decay when setting up bear calls spreads. He sticks to delta rates between 0.16 to 0.20 to collect premium and mitigate risk. He also keeps his contracts ...
What is Theta? What is option time decay? How does time decay work? These are common questions of beginning options traders. Theta is the Greek term used to denote option time decay. Theta is one of ...
The "Greeks" are an essential toolkit for options investors and traders. These mathematical calculations, each named after a ...
Transcript & Terms: Theta Decay:The rate at which an option’s value declines over time due to the passage of time, particularly as expiration approaches.Implied Volatility:A measure reflecting the ...