Recently, I’ve been comparing options buyers and sellers in spreadsheets, and the more I look at it, the more it seems like a tug-of-war with “time”: buyers are slowly eaten away by time value every day, and if the market doesn’t move, it’s like paying rent for nothing; sellers enjoy collecting premiums, but in reality, they’re taking on tail risk first, and when big volatility hits, they have to pay it all back at once.

In the group these days, there’s been talk about stablecoin regulation, reserve audits, and de-pegging rumors. When everyone gets nervous, they want to buy some protection, but as premiums rise, the time value gets eaten even more aggressively…
Thinking about it later, it’s pretty funny— the more emotional you get, the more tuition you pay.
Anyway, my current approach is: if I really want to be a buyer, I set a “time stop-loss” for myself; otherwise, I’ll just end up with a “I should have known” at the end.