What's theta?
Theta measures how much value an option loses as time passes.
Think of it as the price of time: every day that goes by, your option becomes a little less valuable, even if the asset doesn't move.
If the market moves quickly in your favor, you can still profit. But if price stays flat, theta slowly eats away at the premium you paid.
Theta accelerates as expiration gets closer, which is why time matters just as much as direction when trading options.
Think of it as the clock ticking against option buyers and in favor of option sellers.
Want leverage and asymmetric upside? Just remember: time is always part of the trade.
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Join the waitlist: longbowoptions.com
What's the premium?
The premium is the price you pay to buy an option.
Think of it as the cost of getting exposure without buying (or shorting) the entire asset.
If the market moves in your favor, the option can gain value and you can sell it for a profit (or exercise it). If it doesn't, the most you can lose is the premium you paid.
The premium changes based on factors like price movement, time left until expiration, and volatility.
Think of it as the entry ticket to a trade with limited downside and asymmetric upside.
Want more leverage without putting your whole stack on the line? That's where options come in
....and where are you gonna use all this alpha you just farmed?
Yep. Longbow 🏹
Join the waitlist: longbowoptions.com
What's a put?
A put gives you the right (not the obligation) to sell an asset at a fixed price before it expires.
You pay a premium for that protection.
If price dumps, your put gains value and you can sell it for a profit (or exercise it). If the asset pumps or stays flat, the most you lose is the premium.
Think of it as buying downside exposure instead of shorting the entire bag.
Bearish? Puts let you size up your conviction without putting your whole stack on the line.
...and where are you gonna use all this alpha you just farmed?
Yep. Longbow 🏹
Join the waitlist: longbowoptions.com
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What's a call?
A call gives you the right (not the obligation) to buy an asset at a fixed price before it expires.
You pay a premium for that ticket.
If price sends, your call gains value and you can sell it for a profit (or exercise it). If it nukes or goes nowhere, the most you lose is the premium.
Think of it as buying upside instead of apeing into the whole bag.
Bullish? Calls let you size up your conviction without risking your entire stack.
...and where are you gonna use all this alpha you just farmed?
Yep. Longbow 🏹
Join our waitlist longbowoptions.com
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