I find the theta decay on my long options quite annoying as expiration nears.
It eats into my gains quickly.
Has anyone faced this?
I wonder if adjusting my strategy might help.
Theta decay hits hard near expiry. Lost 30% on AAPL calls last quarter. Now I roll positions early or use spreads to offset the decay.
Theta decay accelerates exponentially near expiration. Strategies:
• Close positions 2-3 weeks prior
• Use spreads to offset decay
• Sell covered calls
Analyze historical data to optimize exit timing.
Theta decay’s definitely a challenge. Been there with some TSLA calls a while back.
These days, I’m more cautious. Usually close out positions about 3 weeks before expiry. Sometimes use spreads to balance things out.
Still learning, but it’s helped reduce those last-minute losses. Always keeping an eye on how time affects the trades.
Theta decay’s a real pain, no doubt. Been dealing with it for years.
Here’s what works for me: I never hold options to expiration anymore. Learned that lesson the hard way. Now I close out positions at least 3-4 weeks before expiry, sometimes earlier if the trade’s already profitable.
For longer-term plays, I use LEAPS. They’re pricier but the theta decay is much slower. Also, credit spreads can be a good way to make theta work for you instead of against you.
Remember, options are wasting assets. Time is always ticking, so have a clear exit plan before you enter any trade.
Theta decay’s like a slow poison. Learned that the hard way on SPY calls last month.
Lost 40% in a week despite being right on direction. Now I close long options 2-3 weeks before expiry.
Also started selling covered calls to benefit from decay. It’s been a game changer for my account.