Time Decay in Back Ratio Spreads
In this video by http://www.sjoptionstrading.com, options coach Duane discusses time decay around various strikes on the option chain. In this class he uses a Back Ratio spread to compare strikes and describes how the Greeks, such as Vega, changes through time because of the decay rate difference on each strike. This is an example of a negative DvegaDtime trade set up since the Vega drifts more negative as the calendar advances forward.
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