Registered: Mar 2007
10-30-12 07:21 PM
Quote from johnshepherd59:
Am I wrong in thinking that the 665/680/695 goog weekly fly I bought on friday will increase in value (assuming the stock doesn't tank or go up too much) because of theta decay? Because the stock market did not trade on monday and tuesday, the fly, when it opens tomorrow, will trade like two days have passed. I am thinking that even if implied volatility goes up tomorrow, theta decay should still allow me to make money. I always thought that options decay faster as expiration gets closer.
GOOG will touch 680 tomorrow, so you'll pick up $2 on your fly.