Time Decay & Ratio Spreads

[metooxx]

Originally posted by savage
My question is rather simple. If you look at the time decay curve during the last month of an options life, at what point(broadly) on the curve is the most efficient point considering time decay & option value. Think "Efficient Frontier".

You have to look at the combination ...

 

[Tommyboynjataol]

I wouldn't ask time of the month for quickest time decay I would ask how far out...what month...or how close to experation

 

[dreamer]

I agree with metooxx, there is no pat answer.

However, having said that, I find that the fastest time decay usually occurs towards the end of the option's life.

Good luck trading,

Bob on Whidbey Island


"Don't confuse effort with results."