Time Decay Over Shortened Week

by | December 18, 2009 10:04 am

Time Decay Over Shortened Week

Long premium options will decay on abbreviated holiday trading schedule

Options traders are aware that in the next 12 and half days there will only be five and half days for trading, leaving six and half days for options to decay.

When the markets are not open, long premium option positions decay, and traders are unable to capture or hedge price movements.

VIX near 16-month low

The CBOE Volatility Index (VIX[1]) is recently down 47 cents to 20.02.

Posted at 10:55 a.m.

More Implied Volatility Alerts[2]

Researcher Paul Foster has 23 years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options, and mergers and acquisitions.

Top 5 Stocks for 2010
These must-have companies are just hitting their stride and are poised to outperform the market in the short-term. Investing pro Louis Navellier reveals his top five picks for 2010 in this free stock guide — download your FREE copy here[3].

  1. VIX: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIX
  2. More Implied Volatility Alerts: http://www.optionszone.com/market-commentary/options-activity/2009/12/implied-volatility-alerts-dec21.html
  3. download your FREE copy here: http://www.optionszone.com/order/?sid=XH3254

Source URL: http://investorplace.com/2009/12/time-decay-over-shortened-week/
Short URL: http://invstplc.com/1fCIppp