Time value decay and volatility are the two keys to my option income strategy and most strategies involving the sale of options. (dividendempire.com)
It has always been the sign of «options noobs» to buy cheap out - of - the - money calls that have a large amount of time left, only to see their option values decay as time passes, while the market simply doesn't «shake up» enough to affect premiums to their advantage in any way. (nerdom.net)
The other consideration is to realize that an option's value decays quicker in the final 30 days of its life (as the seller, this is to your advantage), so you may want to write a series of short - term (one month) options instead of a single longer - term option, in order to maximize your time premium capture. (borntosell.com)