Time & Diagonal Spreads For Stocks Options Trading
Time & Diagonal Spreads For Stocks Options Trading
You Must Understand These Spreads and How They Affect Stocks Options Trading Behavior of the Spread In Stocks Options Trading. Time spreads can be a profitable investment strategy for stocks options trading if you understand the concept of time decay. A time spread is designed to take advantage of the fact that a stocks options trading decay curve is non-linear; that is, a stocks options trading value does not decay evenly over time. As an option gets closer to expiration, its rate of decay increases meaning the option loses value more quickly. That decay rate increases progressively day after day until expiration.
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