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Options Trading Concepts Live

Theta Decay Over Time

| Jan 9, 2024
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    Options Trading Concepts Live

    Theta Decay Over Time

    Jan 9, 2024
    In this video, the hosts discuss various trading concepts, market updates, and trade ideas. They mention the recent rally in Crocs stock and the large move in NVIDIA. They also provide a market update and discuss the strength of semiconductor stocks. The hosts discuss the range of E-mini S&P 500 futures and the performance of different stocks. They also talk about the movement of oil, volatility, bonds, and Bitcoin. They give their trade ideas, including selling a call spread in NVIDIA and a jade lizard in Enphase Energy. They also discuss the concept of theta decay and the non-linear nature of theta. The hosts explain that theta increases as expiration approaches and how it is influenced by changes in implied volatility and the price of the underlying. They emphasize the importance of considering theta in relation to the remaining extrinsic value of an option. They provide visual examples to illustrate these concepts. They also answer audience questions about managing covered call positions, playing for higher interest rates, and trading earnings. The video concludes with the hosts discussing trade ideas in Starbucks and Meta Platforms. They suggest defensive rolling in a covered call position and shorting Meta Platforms at all-time highs.

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