S2 blog
Login
theta-decay
research · Apr 6, 2026 · 12 min read

Theta Decay Explained: What Your Options P&L Actually Looks Like

We ran two short volatility trades over the past couple of months. One in TLT, one in EWY. Both had positive theta decay every single day. Both had a positive variance risk premium at entry. One was a clean win where theta was the entire P&L. The other

Read article →
Featured Research Markets Engineering
research · Apr 6, 2026

Theta Decay Explained: What Your Options P&L Actually Looks Like

We ran two short volatility trades over the past couple of months. One in TLT, one in EWY. Both had positive theta decay every single day. Both had a positive

12 min read
← Newer Page 1 of 1 Older →
S2 blog

Sharpe Two provides analytics and data infrastructure. We do not provide investment advice or brokerage services.

© 2026 S2 blog