Theta and Time Decay Explained
Time decay affects your trades and your account every day. This clip breaks down the math of holding a position as it gets closer to expiration.
0:00 Introduction: Time Decay and Theta
1:05 Option Sellers Benefit from Theta
1:11 Theta Is a Negative Number
1:37 Theta Helps Evaluate Holding Costs
1:46 Important for Delta Neutral Positions
2:54 Daily Loss Calculation
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