Option Trading | Theta: Why Short Premium with 30-50 Days to Expiration

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This video explains how the "velocity" of decay grows geometrically the closer we get to expiration. This video suggests shorting premium in the range of 30-50 days to expiration range.

Comments

alokks1999
June 23rd, 2014

This is only true for ATM option. For OTM story is completely different. Beware!

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