What Is Theta? Why Your Option Loses Money Even When You Are Right
The stock did not move all weekend, yet your option lost value — that is Theta, the invisible hourglass over every option buyer. A full walkthrough of time decay.
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Deep dives into options strategies, market analysis, and backtesting reports.
The stock did not move all weekend, yet your option lost value — that is Theta, the invisible hourglass over every option buyer. A full walkthrough of time decay.
Doing nothing at expiration is not just "the premium goes to zero": one cent in the money triggers auto-exercise, and a $2 premium can turn into $10,000 of stock. Here is exactly what happens.
Keep your shares, keep the upside, and lock the crash risk out — buy insurance for your stock. How the protection works, what the premium costs, how to pick the strike, and when it is actually worth it.