Trade Logic Unlocked

Intuitively Timing Trades

Trade Logic Unlocked

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Today, we unlock some of the ‘intuitive’ logic behind why we choose 45 DTE on trade entry for our short premium positions. Mathematically, the 45 DTE marker is advantageous, as right around this time in an expiration cycle, the time decay begins to accelerate. But today, we see that are intuitive reasons to choose 45 DTE. Namely, this choice yields a great balance between “time to be right” and “fast decay”.

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