Sentences with phrase «advantage of time decay»

Following a rules - based trading approach, we sell short - term premium to take advantage of time decay and to offset risks created by our long equity positions.

It's supposed to give no profit at the strike, but nice profits to both the up and down side and take advantage of time decay.

Not exact matches

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.

The goal is to have the stock stay flat, or at least not move too much, so you can sell a series of short - term options against your long term LEAP (which takes advantage of the typical option time decay pattern).