Continuous Theta

The <a href="http://ontt.tv/2ue4J5R">Black-Scholes Model</a> prices options based on a continuous world assumption, which means that all the metrics it produces are <a href="https://ontt.tv/2SYcGcj">always in a state of change</a>. As premium sellers looking to take advantage of time decay, this quite literally means that our short premium positions are always in a state of decay. While this doesn’t necessarily mean <a href="https://app.contentstack.com/(https://ontt.tv/31TDzS5">there is an edge</a> to selling premium before a long weekend, it could factor into your decision making with the existing positions in your portfolio. <a href="https://www.tastytrade.com/shows/from-theory-to-practice/episodes/adjusting-short-strangles-and-iron-condors-11-02-2020">Here’s the segment on adjusting Iron Condors we referenced on the show today</a>.