Theta Differences Between Undefined-Risk and Defined-Risk Strategies

As we sell OTM strategies at trade entry, it’s common for us to have positive theta on our positions at the start. But over the life of a trade, that positive theta can flip to <a href="https://ontt.tv/pOmSS">negative theta</a>, particularly with defined-risk strategies. So as premium sellers that depend on decay, it’s important that we recognize this possibility.<a href="https://ontt.tv/Q15PX">Did you catch our show last week on how to determine Delta/Theta levels for your portfolio</a>?