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decrease in value
1. This factor alone—the delta factor—makes options very attractive for trend trading: as a position moves in our favor, our options increase in value at a faster and faster rate, but as a position moves against us, they decrease in value at a slower and slower rate
2. There are certain market-neutral strategies using options that take advantage of the fact that options tend to gain in value at an increasing rate as a stock moves favorably, but decrease in value at a decreasing rate as a stock moves unfavorably
3. Because of the delta factor, the put should decrease in value at a rate slower than the increase in value of the call option
4. Therefore, you must be ready to accept the risk that the stock will decrease in value
5. A paper loss is when your stocks or mutual funds decrease in value from what you paid for them, but you still own the same number of units