Weekend theta decay

Discussion in 'Options' started by wxytrader, Jul 4, 2025 at 6:38 AM.

  1. wxytrader

    wxytrader

    So is the theta decay priced in before the weekend or Monday it will be applied?

    upload_2025-7-4_3-44-37.png

    @deaddog
     
    Last edited: Jul 4, 2025 at 6:47 AM
  2. 2rosy

    2rosy

    How many days are in a year? You can ask when theta decay happens overnight too.
     
  3. BSM prices calendar days and it's reflected in Monday's vol-line. ofc the idiot is asking the wrong question. Look at where ATM vols went off on Tuesday's close for Wed and where Monday's vols are showing (SPX).
     
  4. deaddog

    deaddog

    I thought you were hoping for a drop in bitcoin.
    What happened to the dividend strategy?
    Where does the capital come from if you get assigned?
     
  5. wxytrader

    wxytrader

    I'm not "hoping" for anything...that's @johnarb job...I'm just looking at the probability of a continuation or a correction.

    I'm already loaded up in dividends. This is just my side gig. :)

    Don't you have a margin account?
     
    Last edited: Jul 4, 2025 at 12:13 PM
  6. deaddog

    deaddog

    Of course I have a margin account.
    But what do you do if you get assigned?
    Do you sell some of your divy stocks or sit on dead capital and pay interest.
    Remember some of the other assignments where you tied up capital for a long period of time.
     
  7. wxytrader

    wxytrader

    If assigned. I turn around and sell a call or sell another put... Bitx has a dividend. If I tie up capital I just move on to other positions or sit back and wait while the dividends roll in.
     
    deaddog likes this.

  8. Brilliant move Bro... where are the options priced in relation to the stock. in other words, what price are you using to price the options?
     
  9. newwurldmn

    newwurldmn

    I’ve been told that the market makers do it at 1:14am. So you can arb them by selling at 1:13 and buying 1:15am.
     

  10. CBOE MMers used to collude at Noon on Friday's. Story from multiple locals.