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How Does a Trader Benefit from a Positive Theta Portfolio?

Achieved by being a net option seller; Portfolio gains value from time decay; Benefits from high implied volatility.
Greeks.Live08.11.25

How Does a Trader Benefit from a Positive Theta Portfolio?

A trader with a positive Theta portfolio benefits from the passage of time. This is achieved by being a net seller of options, collecting premium that decays over time.

The portfolio gains value daily, assuming all other factors remain constant. This strategy is often employed by those who believe implied volatility is too high.

Why Does Theta Benefit the Option Seller but Harm the Option Buyer?
How Can a Trader Benefit from a Negative Theta Position?
Does a High Gamma Position Benefit from Large Price Moves or Small Price Moves?
Does Theta Benefit the Buyer or the Seller of an Option?

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