Sentences with phrase «of time decay»

Each strategy includes an illustration demonstrating the effect of time decay on the total option premium involved in the position.

An important feature of time decay is that it does not happen in a straight line.

The graph below illustrates the notion of time decay.

I continue to be very slow to raise our strikes further, so I don't anticipate a great deal of time decay in that position in the event of a further market advance.

It is a balance of time decay (which is really fast) and trading cost including both commissions and spread.

The call sales capture the rapid part of the time decay curve and also provide some cushion against market volatility.

Hence, having a time target is useful for tackling the problem of time decay.

Today we'll introduce the idea 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.

That would allow a more constructive investment exposure to any rebound, and maintain a significant defense against further losses, at the potential risk of time decay if the market was to move sideways.

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).

For the ITM case, it's the same kind of time decay, except that intrinsic value does not decay.

The answer involves the concept of time decay, or Theta, which we dive into with this post.

Because of the time decay and the way short - term options work, I don't recommend legging in to a position.

Feb 1, 2014 will be an example of time decay for United miles.

In this white paper we examine the topology of legal disputes in three dimensions and explore issues of time decay, or «litigation theta».