Should You Ever Close a Positive Theta Position?

Positive Theta is one of the core principles to portfolio construction at tastytrade. By keeping our Theta above zero, we are able to keep our probabilities of success high and <a href="https://www.tastytrade.com/news-insights/guide-to-theta-and-time-decay" target="_blank">benefit from time decay.</a> But is there ever a time to go in and close a <a href="https://ontt.tv/3l4Eb0M" target="_blank">positive theta position</a> early? Yes, it turns out there is, and the key to understanding when to do this lies within the differences between defined-risk and undefined-risk strategies.