Time decay can be a wonderful thing for the option seller. In fact, it is the driving force behind the so-called ‘income-generating’ strategies. The trader holds a position, waits, and then exits with a nice profit. When the position is market-neutral, and when the market behaves, all gains can be attributed to the magic of time decay.
Predicting the movements of options is not that easy. It is not just the price of the underlying asset; but there are many other factors that contribute to the movement of the price of an option. The overall outcome of the option positions are a result of the changes in the market positions.