Market Measures - January 7, 2021 - Trade Short Duration or Manage Early
Theoretically, shorter duration options can provide a better return on capital. Many traders are attracted to this and start to trade short-duration positions.
If shorter duration strategies can provide a better return, why do we even need to manage longer-duration positions early?
tastytrade discusses the performances between using 21-day options or managing 45-day options at 21 DTE.