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Many conservative income generation trading strategies depend on the time decay inherent in options pricing for their profits. When I establish an iron condor well OTM (out of the money), I am selling option spreads and expecting those spreads to slowly lose value as the underlying stock or index trades within a channel. Other traders may use butterfly spreads or place OTM credit spreads on one side only (calls or puts); all of these trades are based on time decay working in the trader’s favor. This is in contrast to long option positions that lose value over time if the predicted move does not occur, so time is not your friend for those trades.