Day 6.Earning 200% daily! Why are end-of-day options more likely to yield high returns?
@Tiger_Academy:
HelloWelcome to Tiger Academy - 「Options Academy Column」 Issue 6.In the previous article, we discussed how options buyers should avoid holding until expiration to minimize the decay of time value.Of course, if we want to maximize our gains with minimal investment, we can choose to buy options on the expiration day itself, known as trading end-of-day options. How profitable is this strategy? Let's take Tesla as an example. On June 30th (the expiration date), the put options for Tesla generally saw an increase of over 200%, while put options with the same conditions expiring on August 18th only saw an increase of around 40%.The question arises: why are the returns on end-of-day options so high, and what should we be aware of when trading them?Today, let's address this question.1.Why do end-o