Largely we live in a country and culture where choices can be multiplied to the highest sum. One where we find strange pleasure in our relentless attempt to pat the brim of the thinkable: Four ...
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 ...
J.W. Jones writes: As discussed in the first article, “The Hidden Potential of Learning How to Trade SPX and Gold Options” I pointed out that there are several fundamental principles that must be ...
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 ...
If you're just getting started with trading options, you may run into a financial adviser or broker telling you stay away from them. You'll hear that options are "too risky!" (which we've already ...