One of the item to look out for while trading options is the theta . Theta shows the rate of decline in value of the option due to time decay . Eg if it is 40 theta it will mean that is decays by about 0.40 cents per day . When you sell an option , theta decay would be in your favour ! if one's risk tolerance is higher can choose for a higher theta decay , better returns too! If risk tolerance is low , one may consider to choose a longer expiration date but do note the theta is much slower . As per the example below . It is always about risk and rewards ...Good Luck!
$Tesla Motors(TSLA)$ 
Do you use theta? (Maximum1 votes)
- Yes(2 votes)
- No(3 votes)
How to pick expiration date of options?
When it comes to options trading, one of the critical decisions traders must make is selecting the expiration date for their options contracts.
The expiration date refers to the predetermined date on which an option contract becomes void and ceases to exist. This date plays a crucial role in determining the potential profitability and risk associated with an options trade.
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How do you pick expiration date of options?
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