... 12/ 17/ 04 4:15 PM Page 251of the life of the option the closer the expiration date, the faster the theta decay. Therefore, the last day will have the fastest loss of valuedue to time.Since options ... strikeprice for a profit. • The stock makes a dramatic move higher than the upsidebreakeven (74 ): Exit the position or, if the short options are as-signed, exercise the long options to offset them.Long ... environment, the lower strike options (the ones you want to sell) have higher implied volatility and can beoverpriced. The higher strike options (the ones you want to buy) havelower implied...