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mks212

Theta on a three day weekend

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Since the markets are closed Monday, can we expect extra theta decay today to account for the long weekend?  I have read conflicting opinions in various places.

 

Both SNDK and FFIV look like good candidates for a straddle, but 3 days of theta might change the picture.

 

Thank you.

 

Mike

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      What is Options Time Decay?
      However, positions with that positive time decay are subject to losing money when the underlying asset does not behave as anticipated. These losses are directly related to negative gamma (The Greek that measures the rate at which delta changes. Negative gamma tells us that we get longer as the market falls and shorter as the market rallies.) For our waiting period to prove profitable, it is necessary for the market to ‘behave.’ Translation: The market must not stray too far from the strike prices in our position.
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      It’s a fine line between getting out of a position that has become too risky to own and holding onto the trade for a little longer, looking for a market reversal.

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      Download video and slides:
       
      Options Greeks - The Theta.wmv
       
      Options Greeks Theta.pptx
       
       
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