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root strategies
Root Strategies: Final Review
Recap concepts related to risk profiles and single-leg strategies
Theta: Time Sensitivity
Option value decays at a daily rate which is measured by theta.
Shares
Shares do not carry a theta value because they do not expire.
Long Options Carry Negative Theta
Long options are disadvantaged by the passage of time which is indicated by their negative theta value.
Short Options Carry Positive Theta
Short options profit off of the passage of time which is indicated by their positive theta value.
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root strategies
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