Options 101 Course

Take the Spot Test

The Greeks Part II

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4 ways to combat Theta (Time) Decay

  1. sell off any ATM or OTM options with 30 days left to expiration - do not hold options into the last month
  2. sell options as an adjustment to existing positions
  3. sell options you don't own as an adjustment to existing positions
  4. buy short-term DITM options, which have plenty of intrinsic value and virtually no time value - if there is no time value, then it can't decay any further, can it?!

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