Learn About Extrinsic Value

This is a key to options trading! Find out why from our very own Mike Butler

Watch Now

Options Jive

Monday – Friday | 8:40 – 9:00a CT

Theta, Vega and IVR

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Short premium traders benefit from the time decay of an option’s extrinsic value (+Theta), but risk potential losses from exposure to changes in IV (-Vega).

A trade with a high initial profit potential has a high Theta for the amount of Vega risk at the time the trade is placed.

Join Tom and Tony today as they take a look at these risk factors for 16Δ SPY Strangles in different IVR environments.

Options Jive More installments

See All »

Latest tastytrade Videos As of October 26

Most Shared From the last 30 days