Theta Differentials Between Strategies

While selling premium always brings with it some level of positive theta, there can be quite a difference across strategies. Specifically, <a href="https://ontt.tv/2KveN4e" target="_blank">defined-risk strategies will generate far less theta than undefined-risk strategies</a>, and narrower defined-risk strategies will generate even less theta than wider defined-risk strategies. As tastytraders looking to hit <a href="https://youtu.be/ud0ZnSbKNuw" target="_blank">portfolio targets in daily decay</a>, this is an important phenomenon to observe.