Secret Swing Trading Strategy

Forums F&O Option Chain Analysis Avoid Time Decay in Options Trading

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    • #66118
      Nitin Bhatia
      Keymaster

        I receive lot of queries, why i mostly trade in next week’s expiry as the profit is less in such cases compared to current week expiry for similar movement in NIFTY. For example, today my profit could have been double for current expiry compared to next week expiry.

        The answer is to avoid time decay. The time decay is very HIGH near expiry and in case, the trade goes in reverse direction, the loss is more for current expiry due to time decay compared to next week expiry. To minimize loss due to time decay, i trade in future expiry.

        Disclaimer: no suggestions..no recommendations…trade at your own risk…pls do your own analysis. This analysis is only for learning and education purpose.

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