Theta Explained: What is it & How to Trade it

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[Leetcodegirlca]

u look like the logo for wallstreetbets

[CiptyTv]

When I watched this a month ago I had no idea what he was talking about but now i understand

[zernadjiya]

Would be better with a specific example about ATM vs ITM vs OTM THETA with correlation to the graph.

[singularity]

I don't know why anyone would flat out buy an option. Theta will destroy you. You should be using spreads at the very least. Selling premium is the way to go.

[sipwhitemocha]

Woah it looked like he teleported in the beginning. Kinda cool and funny lol

[thehmongzelda]

Saw theta on another video, not sure what it is, came here. He talks about extrinsic value, not got to go look that up. Forgot what I was watching originally.

[manimadhav]

ty so much
all videos about options are superb

[danthemann]

Mike, thank you very well done very well delivered. Great video.

[skeeterskater]

If I understand the analogy of the two buckets- as time passes the hole in the buyers bucket gets larger, accelerating extrinsic value loss to the seller...

[emmanuelameyaw]

Why would option price decay when you freeze the underlying stock price and volatility? Because time reduces value of the option?

[mamtabhambani]

Hi... could you please thrown some more light on how theta and gamma are inversely related since gamma hedge is done for arge movement s in stock process whereas in short run it's Delta that we expect to fluctuate

[Alan]

Is there a method in planning your vertical credit spread by checking the theta level prior to opening your trade?

[bannedagain]

so when you are in the money theta is zero. the premium is uaffected by time decay?

[bhagyashingale]

In terms of absolute value yes but in terms of % of option price OTM decays more heavily

[Infinitelightwizardry]

Thank you, I’m understanding these more and more now!🙏

[wiyxgyo]

I bought a 9-day at the money put option on Netflix. The stock dropped the stock dropped over 3 percent (12 dollars). The put dropped overnight 9 percent ($2.50). In really pissed since I figured I’d make money on a less than 24-hour position in a 9-day put option if the stock dropped 3% overnight.

[UmaMahesh-wujm]

Live example animation video
How to works option greeks

[udaan]

I am a professional index option trader. I buy options for the duration of one day to few days based on the parabolic SAR indicator. Presently I buy option at ATM. As per the discussion in the clip above, I am now thinking to move to ITM one or two strike price inside. This should help me reduce impact of theta on buy price. Do you confirm this conclusion?

[forfun]

Wow, didn't understand a thing from this, sounded as confusing as trinity

[ryanjones]

If you're giving financial tips,
But can't say "Debt" right...
There's a problem