 Welcome to part two of these option tutorials. This is gonna be part two of three. You can go back to look at part one and you will also see later part three on strategies, but we're gonna cover months. Months for options is also very important. Depending on which month you select, you're gonna get different behavior characteristics of your trade. If you have a bullish idea, it might take one or two years to get a full value out of that trade. If you're looking to put on income strategies, you may not want all that time. You may want only 30 days or a week or 45 days. It really depends on the type of trade you are trying to set up and also the environment. If you have high volatility, the premium might be higher than normal. You might wanna do more income trading. If there's low volatility, you might take advantage of the low premium and look for bigger moves if that's the strategy you're looking to do. So I'm gonna jump over to the options and we're still gonna use our Snapchat example, but I wanna show you how all the different months look on the same strike. So let's say we're just gonna do the at the money 11. The current price is near 11. So 11 is the at the money option. Remember, in the money is when the strike is below the current price, out of the money is a junkier option further away out of the money. So at the money is the nearest to the current price. I'm gonna click on the 11 and it's gonna show all the different 11 strikes. And if you notice, we're looking at the calls on the left side from the closest to today to the furthest out in time, they're gonna go up in value. It's almost like a rental property. You're gonna pay a lot of premium for a lot of time and you're gonna pay the least amount as the time runs out. It's like paying for one month of rent versus 12 months of rent. And traders like to pay the least amount as possible because it reduces their risk. And then investors who are providing liquidity who are selling those calls, they wanna get the most for their safety. So if you're looking to put on a bullish trade, there's a decay feature. These are like trading ice cubes. You gotta remember a big ice cube will start to melt slowly. And then as it shrinks, it speeds up because there's more area exposed relative to the size of the ice cube. Another way to explain it is when the options are running out of time, a big move will make that small option really worthwhile. So the decay might be a little high and then melt and then pop open again as the price moves. That's not a little wordy, but what I'm trying to explain is they melt slow and then they melt really quickly. But there will be some residual value in the last week, let's say. So just because the option is decaying quicker and quicker doesn't mean it's safe to sell. That's the point I'm trying to make. You don't wanna sell a really small option because if there's a big move, it might hurt you. So as an investor, how do we use this? If we have a big idea, a stock that's gonna move big, we might be better off buying more time and letting the trade work versus buying a lot of these short-term options. So we covered strike before, we're covering time now. They're gonna behave differently. If I'm a buyer, I want the most time, which means less decay. If I'm a seller, I want my option to shrink quickly. So I want compounding to help me. So I might be looking at the two month, 45 days to 60 day options to sell and if I'm bullish in the direction, I'm gonna want more time. I might be buying a year out at least six months. Six months to a year seems to be a nice place for those big bull moves. And then to help pay for those trades, I might sell 45 days, 60 days, 30 days, something that decays quickly but won't move around too much to hurt me. They'll call that gamma risk or the spiciness of the option. Let me say that again. If I'm looking for a big bullish move, I want the most time and the least decay because decay or the melting is a cost or an expense to me. So I wanna pay the least rent for this exposure, this bullish exposure. So I'm gonna pay for a year call, maybe even a two year call, okay? Not too far out out of the money. That's how I'll get the most bang for my buck. If the stock moves 20 times, 10 times, seven times, five times, my call will have enough time to capture all of that. And then if I'm selling premium, I'm gonna try to sell between 45 and 60 days. That's when the decay curve really starts to crush. That's how we wanna think of options. If you bought a one year option and now there's only 30 days left, you're gonna be kind of worried, you're gonna wanna roll that premium out, which means you're gonna buy it back and redeploy at a different time because you wanna manage the decay rates. Those are the different months. I hope this was useful. Obviously this doesn't cover everything, doesn't cover all the strategies, but this gives you a little bit of a sample of how the different months behave and how you combine different months to create a nice little trade, depending on your scenario. I hope this was helpful and in part three, I'm gonna cover strategies. So follow and then jump over the next one.