I checked the options market on the subway and suddenly thought of that phrase "who is the time value eating." Basically, the buyer is buying a story + volatility, and as time passes, it's like being charged rent; even if the market doesn't move, the value still shrinks.


The seller collects the rent, but if a storm (sudden market move) hits, they might lose several months' worth of rent in one go.
Now I see options more like checking the weather forecast: if it's mostly sunny, don't wait around for thunderstorms; if you want to be a buyer, you have to admit you're racing against time; if you're a seller, don't pretend to be steady—keep your position small and think through the worst-case scenario in advance.
By the way, over in Layer 2, they're still arguing about TPS, fees, subsidies...
It's lively, but in the end, the impact on your position still comes down to "how much volatility there is," otherwise the time value keeps eating away.
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