I see option behaviour like our life cycle. Let me explain in brief as below :
A weekly option active life is basically of 5 days , from Friday to Thursday.
A weekly option active life is basically of 5 days , from Friday to Thursday.
On Friday a Option behaves like just born and is generally indifferent to market movement. Untill and unless there is big one sided move the option generally doesn't loose much value. Like a kid, he is playing, falling and is not bothered of happening surrounding him.
The Monday takes a Option on the verge of entering ADULTHOOD. He is full with energy and moves on either side with market moves. Like a adult is supposed to find his own path in life, the Monday acts like a big deciding factor in the life cycle of Option.
Then the TUESDAY,a matured human being, married, burdened with family responsibilities, either you succeed in career and moves on career path to become something in life or start the journey towards a cumbersome life with loads of seniors and bosses around you.
In the same way, on Tuesday either the option will run to attain new heights or will start to get ruined. The chances of getting hit on Tuesday and then surving next two days is almost impossible.
Now Wednesday , means we had passed our prime in life and will start to loose value for everyone. Our chances to prosper are less and mostly will move towards end of life cycle.
In the same way all options are supposed to loose maximum value on Wednesday. Whatever you buy with direction or without direction, chances of making loss is high
The Thursday brings the death knell for everyone, means 95% of the option. Most of us will die as zero and very few will leave some legacy in life with fortunes for his family.
But those are only very few who will left legacy behind while most will die a hard life like most weekly option becomes zero
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