How can a put decay if price goes down and there is more than enough time value left?

I can 100% guarantee anyone that PTJ averages losers all the time up to a limit.
You just don't trade 10-20 billion by going "all in" into every position, that's just not possible.
And scaling in by averaging up is just as "risky" as averaging down. With averaging up your increasing your cost basis in a way that each new add has lower profit potential and thus the slightest pullback wipes out all your profits.
 
Quote from Arjun1:

And scaling in by averaging up is just as "risky" as averaging down. With averaging up your increasing your cost basis in a way that each new add has lower profit potential and thus the slightest pullback wipes out all your profits.
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Taking any position in the market is risky so why single out averaging up?

Averaging up is a good thing if you are riding a move. Ditto for a down move. If you scale incrementally and run a tight stop, only a gap will take all your profits away.
 
Quote from Arjun1:

I can 100% guarantee anyone that PTJ averages losers all the time up to a limit.
You just don't trade 10-20 billion by going "all in" into every position, that's just not possible.
And scaling in by averaging up is just as "risky" as averaging down. With averaging up your increasing your cost basis in a way that each new add has lower profit potential and thus the slightest pullback wipes out all your profits.
More...

Trading size has different considerations, which do not apply to the vast majority of independent traders. I'm sure when PJT starts to build a position he has an idea of the available liquidity in the market to get on his position at an acceptable average price which he can estimate in advance.
 
Quote from Rodney King:

Wow, I've never seen that quote before! Did you discover it yourself?
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No. It's a famous saying (and true!) from him. Here ya go. No I didn't photoshop this.

Arjun - there is a diff b/w building a position over a few days b/c you run so much money you can't buy all in one day and receiving various fills, some at lower prices than continuing to buy over weeks and months as price continually goes against you like bill miller did w/ aig, fre, fnm, etc.

Re posters saying averaging up is a dangerous as averaging down, no it's not. when price is continually falling the market by definition is telling you that you are wrong. when price is continually rising the market by definition is telling you that you are right. if any other profession you would stop doing something if you kept being punished for it but not trading. and don't say "trading is diff b/c the stock could rebound". i agree it could rebound but why don't you want for CONFIRMATION before entering. it could be so easy a caveman could do it like this "i don't know where the bottom is so i'll wait until the price closes above the 20 DMA then i will place a stop 2 atr below that. if i'm stopped out i know the downtrend has resumed and i'm out".

i'm not trying to start a flame war just bring another perspective.
 

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Quote from FrankSlaughtery:

It's a famous saying (and true!) from him.
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I was being sarcastic, but went over your head -- my bad... The PTJ saying has been repeated 10000x over the past 20+ years. It's like "the trend is your friend." I was amazed you (or anyone) could think it was fresh info.
 
Black Scholes

Call

Asset price ( S ) 80,00
Strike price ( X ) 100,00
Time to maturity ( T ) 1,0000
Risk-free rate ( r ) 3,00%
Cost of carry ( b ) 2,00%
Volatility ( s ) 60,00%
Value 13,0014

Option sensitivities
Delta D 0,4798
Elasticity L 2,9522
Gamma G 0,0082
Vega 31,5743
Theta Q -9,8499
Rho r 25,3820
Carry 38,3835
 
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