Options Time Decay

Time Decay and Systematic Strategies 

Time decay, while ever-occurring, is not constant over time. Understanding how theta affects different options can help us visualize both our potential returns and our risks in terms of gamma exposures.

As theta is constantly changing as the price moves, being aware of these moves is paramount as we can have a position that has a lot more theta and gamma then at inception. Understanding these changes can leave us in a better position in understanding our P&L and ultimately our trading in general.

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Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are ...

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