If you need a brokerage account and you’d like to trade with tastyworks, get one projectoption course for free when you open and fund your first tastyworks brokerage account with $2,000 or more: https://www.projectoption.com/free-options-trading-course/
Learn More About tastyworks: https://www.projectoption.com/tastyworks/
====
Time decay (extrinsic value decay) is an options trading concept that traders of all levels need to understand, especially beginners.
Options are sometimes referred to as “decaying assets” as their prices are observed to decrease as time passes and they approach their respective expiration dates.
While time decay may seem confusing, it actually makes complete and logical sense when it is explained clearly.
In this video, my goal is to explain the time decay of options in the most understandable way so that you can understand why option prices decrease over time.
I hope you feel more confident with your understanding of time decay after this video.
Be sure to leave a comment down below with any questions you may have!
=== RECOMMENDED VIDEOS/RESOURCES ===
Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo
tastyworks Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP
Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA
Options Trading 101: https://youtu.be/3bELT5FZCic