As discussed in the first article, “The Hidden Potential of Learning How to Trade SPX and Gold Options” I pointed out that there are several fundamental principles that must be mastered before ...

Using the same put example, the option would be out of the money at $49 per share or more. ... Time value (Theta): Options are worth more when the expiration date is further away.

The second reason I and most other option sellers sell long-dated options (around 90 days) and monitor the 21-day mark is due to time decay as measured by Theta. Selling options like covered calls ...