What Option Position Benefits from High Theta Decay? ⎊ Path

What Option Position Benefits from High Theta Decay?

Option sellers, or those who are "short" options, benefit from high theta decay. When an investor sells an option, they receive the premium upfront.

As time passes, theta decay reduces the option's value, allowing the seller to profit as the option can be bought back at a lower price or expires worthless, capturing the initial premium.

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