Tick-Tock! How Time Decay Erodes Your Options Profits
Source: Pixaby
Welcome to the relentless march of time, where your options contracts age like milk, not wine. That pesky phenomenon called “time decay” ensures that as expiration creeps closer, your options lose value faster than a streaming service losing subscribers after a price hike.
The brutal truth? You can predict a stock’s movement with eerie precision and still lose money if you ignore time decay. But don’t despair. Play it right, and you can turn this ticking clock into a profit engine.
Below, I’ll break down time decay in a way that won’t make your eyes glaze over, so you can stop bleeding money and start making smarter trades. Let’s dive in.
This post originally appeared at Investing Daily.
Category: Options Trading Basics
