/biz/ - Business & Finance

>>25092213

>>24895391
>Do you wait for the option to expire and then sell or do you have to sell the option before the exp date?
You want to sell your option at least a month before your expiry date because of time decay (aka theta decay).

>>23537415
Learn how options work, particularly what theta decay is.
I'll get to the gist but at expiry, theta deca makes the intrinsic value of your option worthless. So basically the closer u get to expiry ur option is worth less (u lose a fuck load of money <30 days out from expiry onwards)
>>23537451
Dude, I'm a retard. I bought at 21.85 premium. Just say im a retard just say it call me a fucking retard.
>historiaclly it pops off 5% @ earnings
okay well brother let me tell u something. zuckerberg fucked up BIG time they lost so much ad revenue from cocacola, google , verizon, all all these other big buck ad sponsors.
do u know why?? because MARK FUCKERBERG IS A LITTLE PUSSY WHO WONT LET """""""""HATE SPEECH"""""""" ON HIS GAY LITTLE KIKE PLATFORM
SO WHAT IF I WANT TO SAY NIGGER MARK??? WHY CANT YOU JUST LET US SAY NIGGER AND BEAT EARNINGS AND RETAIN YOUR AD REVENUE

>>23534422
>you say that IV is going to runup the price of that call before earnings on thursday,
very much so, yes
>but wont theta decay also offset that increase?
It *highly* depends on your time to expiration (what was your expiration date)???
If your expiration date was within 30 days from today or less, then theta decay would have dramatically offset the IV runup in option price.
But if you had more than 30 days, the theta decay would've been a lot less (this is why they tell you to sell your calls sooner rather than later as expiration approaches)

Pic related demonstrates how much quicker theta decay is <30 days out from expiration for options