tradeTALK

Wider Spreads or More Contracts? Nick Battista has the answer.

Watch Now

Options Crash Course

Options Crash Course: Ep #5 - The Natural Decay of Options

Options Crash Course

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Option contracts offer a unique characteristic that cannot be found in any financial product - the natural decay of the asset itself. Due to the simple fact that options expire on a known date, their extrinsic value is always decreasing as that date approaches, ceteris paribus. Therefore, as premium sellers who focus on out-of-the-money options, we can position our portfolios to take advantage of this phenomenon.

Options Crash Course More installments

See All »

Latest tastytrade Videos As of September 27

Most Shared From the last 30 days