Premiums eating away profits

Discussion in 'Options' started by nxt7, Apr 9, 2016.

  1. OptionGuru

    OptionGuru




    Why do YOU think "theta decay" would be relevant?



    :)
     
    #11     Apr 10, 2016
    Chubbly likes this.
  2. ironchef

    ironchef

    If the realty is none of us will be profitable in the long run, why do it? There is no pot of gold at the end of the rainbow.:(

    But of course none of us believe that or we won't be trading.:finger::D
     
    #12     Apr 10, 2016
  3. dugan176

    dugan176

    Well I'm a beginner trader and curious to know if that played a separate part in losing money in options ...
     
    #13     Apr 10, 2016
  4. OptionGuru

    OptionGuru



    The issue is that the underlying is not under-performing or over-performing what the ATM strangle/straddle premium indicate. All that greek gobbly goop is factored in to the premiums.



    :)
     
    #14     Apr 10, 2016
    dugan176 likes this.