Sentences with phrase «time value decay»

The approach I took was to combine the leverage that options offer, the poor performance of leveraged ETFs over time (see more on ETF Decay), and the time value decay of both options and leveraged ETFs.

I'm not saying you're not a «sophisticated investor» and I am, but I do want to emphasize the risk associated with leveraged ETFs so you're not surprised when the time value decay creeps up in your investment account later.

Downloadable Smart Trading Techniques: How to Profit from Time Value Decay Writing S&P 500 Credit Sp

Time value decay and volatility are the two keys to my option income strategy and most strategies involving the sale of options.

I think video games, as a general rule, have much more time value decay than most fiction books.

Not exact matches

Given that the market's oversold condition has cleared, the Fund again has a «staggered strike» position that I would expect to provide a strong defense against fresh downside pressure (though losses might still occur if our stocks were to perform poorly or if we experience a net decay in option time - value).

Recall the phrase from Condorcet predicting a time when «the average span between birth and decay will have no assignable value.»

Because the neutron decays on a time scale similar to the period for BBN, accurate simulations of the BBN era require thorough knowledge of the neutron lifetime, the average time required for a neutron to decay, but this value is still not precisely known.

They measured the combined energy of two of the decay products — a proton and a meson known as J / Psi, which consists of a «charm» quark and antiquark — and then totted up how many times they recorded each energy value across the thousands of collisions they studied.

The Half Life Time of a quantity whose value decreases with time is the interval required for the quantity to decay to half of its initial vaTime of a quantity whose value decreases with time is the interval required for the quantity to decay to half of its initial vatime is the interval required for the quantity to decay to half of its initial value.

The consensus seems to be that there is a substantial decay over time in value - added to future achievement test scores.

Any time value in an option premium will decay the closer it gets to expiration.

The value of a put option decreases due to time decay, because the probability of the stock falling below the specified strike price decreases.

Now, two months later, let's imagine XYZ is still at $ 50 but the option has declined to $ 0.25 (because two months of time decay has eroded its value).

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.

Because options are a decaying asset they lose value (time premium) as each day passes.

Although it is a less expensive way to own the stock, there are at least two significant risks: (1) time decay will eat away at the value of your deep in the money calls as time passes, and (2) the stock could drop and then not recover before the options expire.

Additionally, leveraged ETF risk must be considered and these should primarily be avoided as «investments» but rather treated as trades given the decay in value that occurs over time no matter what happens to the underlying index as shown here.

The last part of the paper discusses two possible explanations for mean reversion: time varying required returns, and slowly - decaying «price fads» that cause stock prices to deviate from fundamental values for periods of several years.

I always make it a point to highlight my disdain for leveraged ETFs as an «investment» since they tend to lose value over time regardless of the performance of the underlying benchmark given the value decay from daily rebalancing.

It's not just the prospect that magnified performance can also mean magnified losses, it's also the insidious value decay that occurs over time that sucks away value slowly, day by day.

If you just model a 1X and 2X in excel over time, you'll see why the value decay occurs; it's simple mathematics.

The value of our miles decays over time.

In physics, the term «half - life» references the exponential decay of matter, or the time it takes for something to fall to half it's value.

These times (t1, t2 and t3) are sometimes called the e-folding times, the time to decay to 1 / e of the original value.

This is why it is common to refer to «lifetime», or «decay time» in an exponential decay as either the time it takes to go from 100 % to 37 % (t = a), or sometimes the time to halve the initial value (t ~ = 0.7 a)-- which is also called «half - life».

Regardless of the value of the decay constant, «a», be it millions of years or millionths of a second, the time for an exponential curve to go to zero is infinity.

Sadly, you have conflated the average time that an individual CO2 molecule stays in the atmosphere before being replaced (called airborne residence time) with the time it takes the CO2 concentration to return to pre-pulse values after the addition of a pulse of CO2 to the atmosphere (called e-folding time or pulse decay time or atmospheric lifetime).

For example, if the CH4 abundance increases above its present - day value due to a one - time emission, the time it takes for CH4 to decay back to its background value is longer than its global unperturbed atmospheric lifetime.

An instantaneous release, for example, would cause the atmospheric methane concentration to spike immediately, then decay back toward the unperturbed value on a time scale of approximately one decade.