The Only Sure Thing In Options Trading

Posted by Joe Duffy | May 22, 2025 | Joe Duffy's Trading Advantage | 0 |

Last update, written after the close Tuesday I expressed the view that the market was likely going to go through a jagged downward correction. Candidates to take advantage of that scenario were Dell and Zillow on the short side. Both stocks fell Wednesday and Thursday. For my subscribers we are in spreads that were rolled on the short leg Thursday to continue to take advantage of the only completely sure thing in options trading — that sure thing being time decay. Time decay is an exponential curve and the short dated always suffers the largest % loss, and that is exactly what we want to take advantage of in a diagonal calendar spread. The outlook remains the same — SPY market in general trades uneven to somewhat lower. Certainly also an environment where bullish stocks can rally.

Thanks,

Joe

About The Author

Joe Duffy

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