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The Two Sides to Theta: Positive Side

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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The Two Sides to Theta: Positive Side

The Two Sides to Theta: Positive Side

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