People think option buying is difficult because predicting the market is difficult.
But that’s only part of the problem. As an option buyer, you are fighting 3 things: 1. Time decay (Theta): your option loses value as time passes 2. Falling IV: even if the market moves your way, the premium can fall 3. Wrong direction: the market simply doesn’t move as you expected And you don’t need all 3 to go wrong. Even one of them can hurt your trade. That’s why timing is just as important as direction in option buying. So, don't focus on “Where will the market go?” Focus on “When is the right time to enter?”
#PersonalFinance#PsychologyofMoney#FundamentalViews#Miscellaneous#IndexStrategies
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