Discovertastylive: tastyliveThe Two Sides to Theta: Negative Side
The Two Sides to Theta: Negative Side

The Two Sides to Theta: Negative Side

Update: 2025-09-19
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In today’s From Theory to Practice, the discussion centered on the negative aspects of Theta in options trading. When buying options, traders incur negative Theta, as time decay impacts their positions adversely. It emphasizes the importance of direction and volatility in generating profits, as time works against option buyers. Additionally, Theta increases as expiration approaches, heightening the costs associated with holding options. The session reinforced the preference for selling over buying options due to these time-related disadvantages.
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The Two Sides to Theta: Negative Side

The Two Sides to Theta: Negative Side

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