McMillan options book graph of point of maximum decay

Discussion in 'Options' started by wilburbear, Feb 18, 2007.

  1. The McMillan options book had a graph of the point where option decay really accelerated. I think it was with about 3 weeks till expiration. Can anybody post this graph, or give the McMillan page number?

  2. MTE


    Not exactly what you are looking for, but I'm sure it's pretty much the same graph as this one. As you can see the slope really steepens with about 3 weeks to expiry.
  3. Nanook


    Options as a Strategic Investment
    3rd Edition
    pg. 13
    Figure 1-4
  4. So does it make more sense to short option with >30 days than <30 till expiration?
  5. It boils down to what is the strategy you want to employ...some prefer to take advantage of shorting the short-term options but at the same time long with the same month, for instance Iron condor...but in such a way that it gives you theta edge...

    Profitable trading,