Theta is directly correlated with the "gamma risk".
Wanna higher theta ready to deal with higher gamma.
Wanna higher theta ready to deal with higher gamma.
One man's theta is another man's gamma.
Buyer generally pay theta to get access to gamma.
Buyer generally pay theta to get access to gamma.
Buy cheap sell expensive best way to deal.
IV and RV corelation important here.
IV and RV corelation important here.
Theta is not free money. It's a characteristic of an option. Understanding it is important, but really, it's our ability to price risk that makes us money as traders.
Base source: Reddit
Base source: Reddit
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