Basics: Theta of a Vertical Spread

Having an understanding of theta is imperative to success when trading vertical spreads.  

Knowing how time decay affects a vertical spread is important when managing a trade, when you need to roll or close, and when to adjust or hedge. Despite this, most people have very little real understanding of theta with respect to a vertical spread, though it is very easy to measure.

This video provides a very quick and remedial understanding of the theta of a vertical spread.


‪@stratagemtrade‬ ‪@Aeromir‬ ‪@smbcapital‬


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