Tag: TimeToExpiry

Introduction: Time to expiry and strike price are two crucial elements that define the characteristics of an options contract. The interplay between these two factors can significantly influence the profitability and risk profile of an option trading strategy. As an options trader, understanding how to balance the dynamics of time and price can sharpen your market edge. Understanding Time to Expiry: The time to expiry of an option refers to the period within which the option can be exercised. Options are time-decaying assets, meaning their value diminishes as they approach expiry. This...