how can we avoid time decay in F&O trading?

Here are a few strategies that traders can use to avoid or minimize the effects of time decay in F&O trading:

Buy in-the-money options: In-the-money options have intrinsic value, which means that their value is derived from the price of the underlying asset. This means that they are less affected by time decay than out-of-the-money options.


Sell options: Instead of buying options, traders can also sell options (also known as writing options). When you sell an option, you collect a premium, which can offset some of the losses due to time decay.


Buy long-term options: The longer the time until expiration, the less effect time decay will have on the value of the option.


Spread trading: Spread trading involves buying and selling options at the same time, which can offset the effects of time decay. For example, a trader might buy a long-term call option and sell a short-term call option with a higher strike price.


Use trading software: There are many trading software out there that can help you to calculate the time decay and give you a better perspective on when to enter and exit the trade.

It is important to keep in mind that these strategies may not completely eliminate the effects of time decay, but they can help to minimize the risks associated with it. Additionally, it's essential to have a good understanding of the market, the underlying assets and the contracts themselves before engaging in any F&O trading.