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+64  •   The Intelligent Option Investor
+although it is indeed possible to make money using these types of strategies, 
+because multiple options must be transacted at one time (in order to control 
+directional risk), and because in the course of one year many similar trades 
+will need to be made, after you pay the transaction costs and assuming that 
+you will not be able to consistently win these bets, the returns you stand to 
+make using these strategies are low when one accounts for the risk undertaken.
+Of course, because this style of option trading benefits brokers by 
+allowing them to profit from the bid-ask spread and from a fee on each 
+transaction, they tend to encourage clients to trade in this way. What is 
+good for the goose is most definitely not good for the gander in the case of 
+brokers and investors, so, in general, strategies that will benefit the investor 
+relatively more than they benefit the investor’s broker—like the intelligent 
+option investing we will discuss in Part III—are greatly preferable.
+The two drivers that have the most profound day-to-day impact 
+on option prices are the ones we have already discussed: a change in the 
+strike–stock price ratio and a change in forward volatility expectations. 
+However, over the life of a contract, the most consistent driver of option 
+value change is time to expiration. We discuss this factor next.
+Changing Time-to-Expiration Assumptions
+To see why time to expiration is important to option pricing, let us leave 
+our volatility assumptions fixed at 20 percent per year and assume that we 
+are buying a call option struck at $60 and expiring in two years. First, let’s 
+look at our base diagram—two years to expiration:
+Advanced Building Corp. (ABC)
+5/18/2012 5/20/2013 249 499 749 999
+100
+90
+80
+70
+60
+50
+40
+30
+20
+Date/Day Count
+Stock Price
+GREEN