1. The ‘Smarter’ Directional Bet
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2. The Math of Leverage (Risk vs. Reward)
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3. The Greeks of Momentum (Delta & Theta)
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4. Picking Your Strikes and Assignment Risk
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5. Actions to Take at Expiry
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6. Topic 6: Course Summary & The Bearish Roadmap
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Because you are “Buying” a spread to bet on a move, time is generally your enemy.
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The Long Leg: Decays at -0.130 (Costing you $13/day).
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The Short Leg: Decays at -0.137 (Earning you $13.70/day).
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The Result: -0.130 – (-0.137) = +0.007.
The Bottom Line: In this specific SPY example, because volatility was high on the lower strike, you actually have a Small Positive Theta. You are earning about $0.70 a day. Usually, in debit spreads, Theta is slightly negative—but by selling the $668 put, you have almost completely neutralized the “Cost of Waiting.”