Long put, long theta

Discussion in 'Options' started by erol, Oct 5, 2009.

  1. Donnap is right. Exercise strategies have to consider the cost of a such decision.
    The point to understand is that positive theta tells you that you will earn later what you could have today. There is no additional money.
     
    #21     Oct 9, 2009
  2. erol

    erol

    i think right there, that sums it up for me.

    thanks again to all of you for clarifying this for me.

    i was wondering if there was an edge in the market that i was not taking advantage of, I guess not.
     
    #22     Oct 10, 2009