Ep 83: Option Trading – Theta Decay & How it Works!
★ SUMMARY ★
This week we’re talking about Option Trading and Theta Decay and How Does it Work. And how does it affect your trades.
The last couple of days we’ve discussed day trading, when to trade, when to sit out. We’ve also talked about the Intraday action and day trading and social media as well.
Typically, for most people, buying options is a waste and it’s a waste in a sense that they don’t understand how this Theta works and they keep losing money and they don’t understand why they keep losing money. And if you didn’t know this is the reason why you’re losing money.
Posted at: http://tradersfly.com/2016/05/ep-83-option-trading-theta-decay-works/
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I am still having trouble with understanding the concept behind ‘you lose money everyday’. Say a call option is bought on Jan 1 with an expiration date of Jan 20. Now, if the stock does not move from Jan 1 till Jan 17, but then shoots above the strike price on Jan 17, and I exercise it then, don’t I make money then. So how did I lose money everyday?
Great video. Do you have a video available on all the Greeks?
wow this is really good..you are a great teacher.
Hi Sasha what about selling strangles / short puts after earnings announcement? Tasty Trade really encourages this, even for new traders, welcome your views. Thank you. Sunil
awesome again I'm starting to be profitable thanks so much
Thank you Sasha for posting
Hi, I'm a university student who are very interested in trading options, could you please tell me what option stimulator you are using?
How much for your you make this sound simple do you coach?
Can you profit on an option even if you don't own the stock? Can you sell an call if you bought it at 75 strike and know the market price is 125 can you sell the contracts for a profit even if you don't own the stock?
Hi, what broker do you use to trade options?
I currently use TDAmeritrade but they're pricy and I trade lots of position..
Great Video as always Sasha very valuably information if your a Option Trader. Quick question, when it comes to Theta whatever the Theta Price price is that price decay is for each individual contract so if I have 10 contracts that Theta price decay is times ten correct?
Thanks again