Theta decay is a critical concept in options trading that refers to the erosion of an option's price as it approaches its expiration date. This phenomenon occurs because options are time-sensitive assets, and their value diminishes over time, especially as the expiration date nears. Understanding th...
Imagine this: You’ve been carefully watching a stock's price, and it's hovering within a certain range. You're confident it will stay there for a while, but what’s next? Instead of buying or selling the stock outright, you can utilize an options strategy that takes full advantage of a neutral outloo...
The Power of Weekly Options: In the fast-paced world of trading, weekly options have emerged as a compelling tool for savvy investors. Unlike their monthly counterparts, weekly options allow traders to capitalize on short-term market movements, offering unique advantages and risks. Why should you co...
Why Hedge Option Selling? If you're selling options, the potential for reward is undeniable. The thrill of collecting premiums, watching as time decay works in your favor, and generating income from the markets is a tempting strategy. But here's the problem: selling options leaves you exposed to unl...
