There are not too many things in the life that are absolute.  None of us are going to get out of this life alive, taxes are here to stay, especially now with record government spending and time will pass. 

In the trading game, there are no certainties with the exception of theta.  Theta is the greek that indicates the daily decay rate of options.  If you are a holder of options, theta is your enemy because as each day passes, your option is worth less as time decay eats away at the value.

Because of the certainty associated with time decay as measured by theta, I prefer to be a seller of options.  The certainty of decay is now working in my favor.  I don’t need the stock to move and in fact, I would prefer it didn’t move at all.  I can make money in all three market conditions, bullish, bearish or stagnant.  I don’t need to hover over the trade and I can sleep at night.  I can structure a program that will generate monthly income with a high degree of probability of working with a minimal need for adjustments.

If you are a seasoned trader, you may know of these strategies, but are they working for you on a consistent basis?  If not, click here to learn more.  Best, Robin

Bookmark It

Hide Sites