Theta and Time Decay Archives - Sell Option Premium

Benefit from Time Decay in Selling Options

January 22, 2018 Richard Forest Leave a comment

We prove again and again that the selling of options is very beneficial. In selling options we encounter the same elements that affect the options premium as when we buy the option. The components are, time untill the options expire, volatility and the strike price, and time decay. Let us discuss each part and how you can benefit from it. […]

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Benefit from Theta Decay in trading Options

May 22, 2017 Richard Forest Leave a comment

Theta Defines an Option’s Time Decay Theta Decay is often referred to as time decay. It describes the rate at which the value of an option will erode as day passes. Assuming that all other inputs are unchanged. The theta number is calculated using an option pricing model. Theta is a component of a group of calculations that is called […]

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