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From Theory To Practice - October 12, 2021 - Theta Differentials Between Strategies

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English - October 12, 2021 18:31 - 28 minutes - 284 MB Video - ★★★★★ - 173 ratings
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While selling premium always brings with it some level of positive theta, there can be quite a difference across strategies. Specifically, defined-risk strategies will generate far less theta than undefined-risk strategies, and narrower defined-risk strategies will generate even less theta than wider defined-risk strategies. As tastytraders looking to hit portfolio targets in daily decay, this is an important phenomenon to observe.