Calm down Bernie supporters.
… I’m talking about Theta burn AKA time decay with
Here’s how it can work for or against you.
For those that buy option premium betting on
direction, this is like having a nail in your
Hopefully, you can get to your destination before
the tire loses all its air.
For those that sell option premium, this is one of
the components that works in their favor. It’s
similar to having the wind in your sail.
In the markets, you have to pick your spot and go.
99.9% of the time, you’re going to have the trade
you placed go against you.
Think about it like this, a boxer going into a
fight is confident he will win against his
opponent, but knows he’s going to get punched in
That’s respecting you opponent and being
When selling option premium, you will usually
see the position go against you, but the thing
most forgot about is that they still have the
time decay of those options working in their
So while you’re feeling the burn on a short option
premium position (like I am right now), remember
that at least you have time decay working in your
favor while you let things play out the way they
Bernie may not officially approve this, but the
book I wrote will teach you how to use the option
burn to profit.
To your wealth, freedom & options!