Max Profit Time and Acceleration

As premium sellers in the options market, we obviously want our positions to remain out-of-the-money. By staying OTM, the positive theta on these positions leads into premium decay, and eventually, profitability. But one thing that is interesting to note is that all OTM positions are not created equally - the moneyness of the position plays a big role in determining just how long it will take to reach a given profit target.Check out my latest blog article, <em><a href="https://www.tastytrade.com/news-insights/volatility-trading-how-to-trade-during-volatile-markets">Volatility Trading: How Traders Can Take Advantage of Volatile Markets</a>.</em>