@rstdenis@tberry917@PeterSweden7 A thousand disconnect digital traces, vs a centralized system linking them all together and using AI to analyze the interconnected data and make decisions about your life. Not different at all.
@UncommonYield@Sunny_Solutions Yep. I like the strategy. Lower yield but safer than using weeklies. Lots less work too, with a price target limit order.
@UncommonYield@Sunny_Solutions The point of selling at 30-45 days is that is when theta starts picking up meaningful steam, but it gives time to manage if it moves against you. Your collateral (100 shares) is doing more theta decay work the closer to expiration the option is.
@UncommonYield@Sunny_Solutions Thanks for that. See that curve? The slope of the tangent is theta. The closer to day zero, the faster the decay slide. If you zoomed in to 30-0 and sliced it by day, day 5 would show more theta decay than day 30 because the slide is faster!
@UncommonYield@Sunny_Solutions OTM calls have no intrinsic value, just extrinsic. Only extrinsic value decays due to theta, and theta decay accelerates from 4 weeks to 1 week.
@UncommonYield@Sunny_Solutions Theta is a calculated number on each option. Compare it at 42 days and 1 week, and you'll see that it decays faster at 1 week. Weeklies have higher theta decay, but more delta exposure.
@valorousman@SizeMichael@SenWarren Inflation is 6.8%, and your house (assumption) probably appreciated 30%. Your wealth also therefore went up, and you should pay more taxes on that "income"?