Long put, long theta

[MasterAtWork]

Donnap is right. Exercise strategies have to consider the cost of a such decision.
The point to understand is that positive theta tells you that you will earn later what you could have today. There is no additional money.

 

[erol]

Quote from MasterAtWork:

Donnap is right. Exercise strategies have to consider the cost of a such decision.
The point to understand is that positive theta tells you that you will earn later what you could have today. There is no additional money.

i think right there, that sums it up for me.

thanks again to all of you for clarifying this for me.

i was wondering if there was an edge in the market that i was not taking advantage of, I guess not.