The Other Side of the Coin (Same Move, No Move at All)
See what happens to the same three options when nothing moves at all. OIC instructor Mat Cashman walks through Theta decay to show why Gamma and Theta are two sides of the same coin.
0:00 Introduction: Theta in Zero DTE
0:23 Zero DTE Theta = All Extrinsic Value
0:48 10-Day: 16¢ Theta, 30-Day: 10¢ Theta
1:17 No Move: Stock Stays at $100
1:38 Zero DTE: 100% Value Lost
2:16 Percentage Losses: 100%, 5%, 2%
3:00 Extrinsic Value Goes to Zero
3:44 Gamma and Theta: Two Sides of Same Coin
4:28 Different Risk Profiles by Duration
Register to view the complete 0DTE Options – The Move to Shorter Duration Options and What It Means for Risk webinar: https://bit.ly/4wWNFAw