From Theory to Practice - September 18, 2025 - The Two Sides to Theta: Positive Side
Update: 2025-09-18
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In today's From Theory to Practice, Jim Schultz discussed the positive side of theta in options trading, emphasizing how option sellers benefit from time decay. When selling options, positive theta creates natural downward pressure on extrinsic value as expiration approaches, improving probability of profit for out-of-the-money positions.
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