Given the quiet market backdrop to start 2013, we have been laser focused on appropriate trade structures that prevent us from losing on time decay. CC’s post on Friday was a detailed summary of our thoughts, and we wanted to follow up with a bit more trade school on this important subject.
With that in mind, I would like to introduce a good friend and fellow options trader, Felix Frey, as a contributor to RiskReversal.com. Felix has worked on both the sales and trading desks of stock options groups at multiple banks, and he is currently the head options trader at hedge fund Scoggin Capital Management in New York. Felix is also the creator of MyOptionsGeek.com and Geek School, a free online options educational website with tools that help investors translate the messages emerging from the options market. Follow Felix on Twitter @myoptionsgeek.com.
Felix has created various educational power points to demonstrate these concepts. Today, we are presenting his slides on the subject of Time Value and Decay.
-Enis
[SlideDeck2 id=23608 iframe=1]