Square root theory

Karen the “Supertrader” has become a source of both inspiration and curiosity to many in the investment world. Her three interviews on the tastytrade Network have captivated over a million viewers, many of whom are fascinated by the options trader and philanthropist’s story, strategy, and overall attitude towards managing her money.

Futures and options are contracts and similar to any other contract it is a contract between a buyer and a seller. Buyer is bullish (expecting the market to go up) and seller is bearish (expecting it to go down). Only when there is trade between a buyer and seller, a contract opens and all such open contracts are together called as open interest.

This video explains how the "velocity" of decay grows geometrically the closer we get to expiration.