and I wouldn't change this system for the world.Submitted by moonyou22 t3_11dfyy3 in wallstreetbets
BullyBumble t1_jad62lo wrote
Reply to comment by polarbearbreeze in and I wouldn't change this system for the world. by moonyou22
Dude. Let me promise you - 90% of references to theta, including this post, don’t use the term correctly.
It’s the diff between saying “stock XYZ might go to 100 from 80 by tomorrow” and “…to 100 from 80 within a year”.
You’ll notice if you open the options chain, the farther the strike the lower the price, and the farther out in time the higher the price.
Theta properly refers to the diff between same strike options over x time. So every time “theta gang got me” but price moved through a strike they missed the point of theta.
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