Time decay, The Good, the Bad, and The Ugly.
So I love Theta, right? I love that Theta is my best friend. It's also known as time decay. And since I sell options, I know that every day that goes by, the options that I've sold are closer to expiring, my trades are closer to ending. And I am closer to keeping all the money that I've already collected for selling the options. So it's a good thing, when I'm selling options when I'm trading options, theta is a great thing. Time decay is wonderful, I love it fish the weekends, right? It's a market, it's not moving, but I'm still getting my theta decay.
And it's funny, because in the fund, you know, I'm starting to pay attention to the theta number. So, theta is basically how much money are you going to make every day from time decay, and it's a number. So you can see based on how many positions you have, there's a numbers like, Okay, could be 50 bucks, you know, it could be 1000 bucks could be 500,000 bucks, you know, whatever it is, it's a number that you're like, oh, man, I'm gonna get that money tomorrow. Oh, yeah, this is nice. Obviously, it's not guaranteed. But if one day passes, and no price change, or no volatility changes, then that's the amount of data that you get. But it's good to have a gauge, right? But today, I want to be talking about a different time decay.
And this one is not the happy type of time decay, all right, it's not theta, but it's the time decay that we all go through in life. So we all know it. We all know that death is coming for all of us. Yes, we're all going to die. But for whatever reason, we forget about it. We put it in the back of my mind, we put out a video No, I'm not thinking about it. I'm not gonna worry about that, you know, I'm gonna live to a million, I'm not dying, you know, I don't want to do that. And so we stress out about little things, we get upset about petty little things. cut me off.
You know, in the big deal, it's not right, in the in the big scheme of things. And you forget that in like, 100 years, just about everything we do is gonna be meaningless anyway. Realistically, 100 years, we're gonna be gone, okay, nobody's gonna worry about it. Nobody's gonna be thinking about us. Nobody's gonna worry about that one guy that is off, it's meaningless. So I read this tweet on Twitter.
So the other day, and this guy, he mentioned the Queen of England, right? So he said that there's this woman, right, the Queen of England. She was at one point, the most powerful person in the world, most powerful. She had control and dominion over millions and millions of people. She was one of the richest people in the world. And she had her face on multiple currencies in different countries. I mean, you gotta be a big deal to have your face on a currency. Right? And she had it. Like, for some reason, I don't know why Canada had her face on their country, on their currency. Even though they were an independent country. As like, if I was an independent country, the first thing I'm going to do is get those oppressors off my currency. I'm gonna have my old people on my currency, but whatever. You Canadians, you guys figure that part out.
Have you? I haven't, right? It's like I knew who she was. And Usually the big deal are in England and during her life after she died, to me, it's like big deal. Didn't bother me at all. Right?
So, you know, I mean, if we think we're a big deal, are we as big a deal as the Queen? You know, that people are going to idolize us and come to our funeral like 1000s and 1000s of people are going to come to your funeral. Yeah, I don't think so. Probably not unless you're really famous. Oh, we do have some really famous people listening to the podcast, though. Maybe we do have some of you. Right?
I don't know but I happen to start an exercise recently. That got me thinking about death a lot. Actually. That's where this whole episode is coming from. Okay. So I heard the speaker and he said that he does this because he had a near death experience, and ever since then he's, you know, trying to find ways to keep constant reminders that hey, look, I need to, I need to really live in the present, right, I need to make every day count. There's only so many times you can read the book Tuesdays with Morrie.
I mean, yeah, you read it, you get remember, oh, yeah, life is coming. We got to live life, but then you forget about it, because life happens and you forget about it. So this guy came up with an exercise that he said to do, and I've started doing it. So this and here's how I would work.
So he goes, we need to find out how many days left, we have to live average, right? So for men, the average age in the United States that we live to is about 80 years old. For women, it's around 82. So you take 80 minus your current age, whatever that is, and you multiply by 365, to find out how many days you have left. Now, if you're listening this and if you're over 80, congratulations, you got, you know, bonus time. Congratulations, that's awesome. But you probably think about death a lot more than somebody my age. Sorry.
Anyway, so look, that's the rough calculation. If you want a more precise calculation, there's this thing called death clock.com, death clock.com, you can put into your, if you're a smoker, what's your weight, what's your body fat percentage, all this, it'll give you more precise number. And then once you get this number, you take a dry erase marker, you know, one of the ones that writes on the whiteboards, then you can erase it, you take one of those, and you write your number on the bathroom mirror, so that you can see it every single morning, when you wake up and brushing. And he got that number right there staring at you in the face. And every day, when you wake up, you got to go over there. And you got to erase the last number and minus it by one, right, so that you have this physical remembrance, this reminder that man, I got one day left or less, right, I got one day less to accomplish the goals that I want to set to achieve the things I want to do. To say I love you to my family and friends and whatnot and, and just enjoy my life. Right? Because I Oh, yeah, I'll do that later. I'll do that later. How will you see those numbers ticking down every single day? It can be very shocking. For one set. Now. I've been doing it for two weeks now. And it has definitely shifted the way I behave. I took the kids into bed more. Tell them more stories. You know, my my daughter is six. She's not gonna be six forever. And I.. I'll admit it, I sometimes I hate going upstairs to tuck him into bed because it's going up the stairs. It's going upstairs all the way around the house. The Big House has taken a lot of walking, toys on the floor and whatnot, you step on something in the dark. Ah, yeah. But ever since I started doing this, I look forward to it. I want it to come in. You know, she's always asking me for stories. I, she doesn't want to read story. She wants me to make up stories.
So I don't know what to say. Right? I run out of things to say. But now I'm doing it again. Because the time is gonna come where she's not gonna ask anymore. And that's gonna be a sad day. But I don't know when that's coming. But now I see the clock ticking down, the numbers ticking down. So I'm like, Yeah, though, you know, I'm running out of time to tell stories.
And I also spend more time cuddling with my wife, you know, I spend more time with her. Because those are the things that are most important. My wife and my kids and the time I spend with them. Those are the things that are most important. Not, you know, I mean, I love you guys. And I hope that you listen to this podcast and you listen to all the episodes and you share them with your friends. So that the numbers of the watches and the views and they're in the downloads all increase like crazy.
So I hope you do that shameless plug. Right? But it's not the most important thing in my life. I hope it helps you. That's why I'm doing it. I hope it really helps. And I wish you did let me know right, your feedback. But to me, what's realistically there? For me the most important is obviously my family. And so I say no, a lot less to them. Right? Hey, Dad, can we watch a movie? Or cartoon? Come on guys. They want to do it. I get to hold them. I get to cuddle with them. I get to spend time with them. Yeah, let's do it. "Hey dad, can we go play video games?"
Sure. Yeah, let's do it. Right. And a side effect of this is that my wife takes me for granted a lot less too because that number is freaking her out as well. She doesn't put her number but she looks at my number going down and it freaks her out. So she is also nicer to me. If you know what I mean. Okay.
And as I get older, right, I'm noticing the days, they just go by faster, which is great for my account balance, right my trading account because of the Theta decay, the options decaying, it goes by faster. But this little number reminder keeps me thinking about the present, and helping me make the most out of every day that I have left. Right? And I urge you to try it.
And even though, you know, one thing we have to remember is that 80 is the average, right? 80 is the average for the man to live in the United States. It doesn't mean we're gonna get to 80. And I had a very sad reminder of that this week. Because this episode, I want to dedicate it to a friend and a student of ours, Mr. Eddie So.
I found out this week that Edie passed away recently in his sleep at age 50. So he went early. I mean, Eddie had his own tech startup, he was living in Silicon Valley living the life he had it, all right, he had money. He had success. He had a great family. But when he found options and option genius, he really found his passion. I mean, it lit him up. So much so that eventually within about a year, I think he quit his job to trade full time. And he even got a vanity license plate for his Bentley, you know, the the license plates where you can pay extra and you get letters on the back to spell something out? Well, his license plate read "Option Trader", which was really, really cool. You know, unfortunately, Eddie wasn't an option trader for too long. But it was a pleasure to know Him. So rest in peace, my friend, I'm dedicating this episode to you. And he's actually I've actually interviewed him before, and so you can listen to his interviews, or I think there's one on the podcast and on the YouTube channel.
So again, right, even though we're supposed to live to 80 and beyond with the new technologies and all that stuff coming out, I'm looking forward to doing that. But you never know. So live in the present. Be careful. Spend time with your loved ones as much as he can, you know, don't sweat the small stuff and all that stuff. So until next time my friends, trade with the odds in your favor. Goodbye.
