Do you ever have that feeling, when buying options, even though you clearly see the right direction, your account still slowly gets eroded by "time"... To put it simply, the buyer is racing against time, as the time value chips away at your costs every day; the seller, on the other hand, relies on this "time tax" to slowly collect rent, but a big wave of volatility could make them lose everything they’ve gained.



Now I better understand why many people love being the seller: it's not that they’re better at predicting, but they stand on the side of "time." But don’t be too superstitious, especially lately, as on-chain data tools and tagging systems have been criticized for lagging or being easily manipulated. I see those labels like "smart money is on the seller/buyer" just as references, not gospel... Anyway, my own approach is: as a buyer, control your frequency and position size, don’t expect to hit the perfect timing every time; as a seller, accept your fate and set a stop-loss, or you might get taught a lesson in one shot.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned