Posts on the Topic Time-decay

Option trading with a budget under $1000 allows individuals to leverage small investments for greater market exposure and potentially high returns, but requires knowledge of options mechanics and smart strategies due to the associated risks. It's important to choose low-cost...

Option trading holidays, which usually coincide with NYSE holidays, are critical for traders to monitor due to their impact on market liquidity and option pricing strategies. These days can lead to reduced trading activity and wider bid-ask spreads, requiring adjustments...

Crypto options are financial derivatives that allow traders to speculate on cryptocurrency prices or hedge against volatility without the obligation to buy or sell the underlying asset. They come in two main types, American and European, with call and put...

Option trading risk refers to the potential loss of capital due to unfavorable price movements in the options market, with factors such as type of option and volatility influencing this risk. Effective risk management is crucial for preserving trading capital...

The Greeks are essential tools in the world of crypto options trading used to quantify risk and optimize returns. They measure different dimensions of risk, including sensitivity to the underlying price, acceleration of price changes, time decay, volatility, and interest...