How Weekend Theta Decays
Option Traders, I know I have harped on this before; If a trader is past his goal for P&L or is close, consider exiting the trade on Friday. I don't care what the option trader uses to calculate theta decay, TOS, Optionetics, whatever system. The decay the system is calculating is wrong. By Friday afternoon, 90% of the decay for the weekend will be out. The numbers the trading system is giving you are faulty. It has to do with our inability to trade over the weekend. Traders can't arbitrage it, it gets priced out early. Keep that in mind.
Tomorrow I will post the long awaited article. Keep those emails, comments, and message boards questions coming otherwise I won't know what to write about.