Theta Decay | What Is It and Why It Matters When Selling Options
tastytrade provides some great visuals of how options will decay over the expiration cycle.
See more tastytrade videos: http://bit.ly/1w3pDlp
The time remaining until an option's expiration is an important feature of an options price. The more time until expiration, the more time that is available for the stock to move and therefore the more premium built into the option's price. The option's premium will decrease over time. This is known as Theta decay. As sellers of option premium, we want to have a large amount of theta decay at all times. Today, Tom Sosnoff and Tony Battista provide some great visuals of how options will decay over the expiration cycle. The guys look at at the money (ATM), in the money (ITM) and out of the money (OTM) options as they all decay differently. They explain how the rates of theta decay are different for these options and show why they look to manage trades early!
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Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C
Subscribe to our YouTube channel: http://goo.gl/Szl24S
Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C
Download our mobile app, Bob the Trader: http://goo.gl/zgIyco
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Видео Theta Decay | What Is It and Why It Matters When Selling Options канала tastytrade
See more tastytrade videos: http://bit.ly/1w3pDlp
The time remaining until an option's expiration is an important feature of an options price. The more time until expiration, the more time that is available for the stock to move and therefore the more premium built into the option's price. The option's premium will decrease over time. This is known as Theta decay. As sellers of option premium, we want to have a large amount of theta decay at all times. Today, Tom Sosnoff and Tony Battista provide some great visuals of how options will decay over the expiration cycle. The guys look at at the money (ATM), in the money (ITM) and out of the money (OTM) options as they all decay differently. They explain how the rates of theta decay are different for these options and show why they look to manage trades early!
======== tastytrade.com ========
Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C
Subscribe to our YouTube channel: http://goo.gl/Szl24S
Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C
Download our mobile app, Bob the Trader: http://goo.gl/zgIyco
Follow tastytrade on Twitter: https://twitter.com/tastytrade
Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade
Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade
Follow tastytrade on Instagram: http://instagram.com/tastytrade
Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
Видео Theta Decay | What Is It and Why It Matters When Selling Options канала tastytrade
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