Time is called THETA in option books.
Now is it a NO loss strategy?
Not at all.
Can it give a huge return?
Not at all.
Now how to earn this time value?
Easy- only Option selling.
Is it that simple?- then all the big money will be selling option & making millions.
If some one is selling, then the same someone must have been buying.
So option buying & option selling - almost all cases both can earn.
But the big factor of Option selling is TIME decay.
Also big factor for option buying is Volatility.
Now u know that THETA is friend of Sellers.
Vega is friend of buyers.
Now is it a NO loss strategy?
Not at all.
Can it give a huge return?
Not at all.
Now how to earn this time value?
Easy- only Option selling.
Is it that simple?- then all the big money will be selling option & making millions.
If some one is selling, then the same someone must have been buying.
So option buying & option selling - almost all cases both can earn.
But the big factor of Option selling is TIME decay.
Also big factor for option buying is Volatility.
Now u know that THETA is friend of Sellers.
Vega is friend of buyers.