One of the most applicable laws inis that of ‘Diminishing Returns’. Generally speaking, this means that your first units of input are the most valuable in their production of output, with each additional unit of input yielding less and less productive output.
As tastytraders, we can take this very same idea and apply it to an. Specifically, our research has shown us that the first half of the cycle (45 DTE to 21 DTE) is clearly the most beneficial, the middle (21 DTE to 7-10 DTE) is more up-in-the-air, and the end (7 DTE and less) is simply too risky for the potential reward. Thus, it seems that the Law of Diminishing Returns .