Thinking about selling a long dated call option, like something expiring years out? Don’t do it, and here is why.
When you sell options, you want to collect theta decay as fast as possible. Most people think about how much total income they will collect, but that is the wrong metric. What actually matters is how much income you are collecting per day. A long dated option collects close to zero premium per day, which means your capital just sits there doing very little for you.
You’ll collect far more premium selling monthly options repeatedly than selling one option years out. Learn how to think about theta the right way at optionsplay.com/op-socials
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