Daily Options Report

If you can't get enough Favre this week, this is just awesome news.

Fox announced that it will have a camera "isolated on Favre from the second he takes the field against his former team until the moment he runs back into the locker room."

Favre leading the Minnesota Vikings against his old team, the Green Bay Packers, is going to be the story of the week in the NFL media, and the folks at Fox are going to milk it for all it's worth. In fact, if you want to watch three hours-plus of Favre, you'll be able to see every move Favre makes for the entire game online at either FoxSports.com or NFL.com.

So let's say you went out short options on Friday, are you making 3 hours of time decay while you sit and watch Brett sit and watch half the game from the sideline? Really not, much of your weekend decay was already reflected in the Friday closing price. Options911 has a nice explanation of this concept (hat tip VIX and More). I've tackled this topic from a different angle, namely how it throws off volatility stats, but as a trader it's more important to understand how decay works than how the VIX reflects it.

Anyway, it's Friday and it's Halloween Parade day, so will get into this more next week.