MJ DeMarco
I followed the science; all I found was money.
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Yes. Timing becomes very important, or time decay will become a major cost.
Please stop. You have no idea what you're talking about.
I'm not even sure you read the damn article or understand theta.
With the option, you have a time limit before they become worthless.
True in theory, but not in practice.
You don't allow the LEAP to approach expiration. NEVER.
You sell the LEAP at a profit, or the loss, and then rinse-repeat.
When a LEAP ceases to be a LEAP (< 100 days) you sell, and it is still packed with intrinsic/extrinsic value.
You can actually have the stock go down, and still land in profits because the short options rapidly expire.
I've had several occasions when my LEAP lost $1000 in value per contract, but I profited $1,500 in short options, still grabbing $500 profit on the entire trade.
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