Negative Theta (-0.065):

• • In a Long Put, Theta is your Enemy.

  • This is the “Rent” you pay to stay in the trade. Every day that passes, your option loses $6.50 in value ($0.065 x 100), all else being equal.

👨‍🏫 Mentor’s Insight: The Race Against Time

“Stephen here. Buying a Put is a race. You are racing against Theta.

Because you are paying $6.50 a day just to hold the contract, you need NVDA to drop fast enough to offset that cost. This is why we don’t ‘Buy and Hold’ long puts forever. We look for a sharp move. In our weekly 1-on-1 mentoring sessions, I’ll show you how to pick an expiration date that gives you enough time to be right without Theta eating all your profits. Not sure if you should buy 30 days or 90 days? Book a Free Strategy Call today and let’s look at the ‘Time Decay’ together.”

🛠️ Stephen’s Implementation Tip:

• Volatility (Vega) Bonus: When markets crash, fear (IV) usually goes up. This actually helps your Long Put. A spike in fear can make your put more valuable even if the stock price doesn’t move!

• Quant Search!