Trading on May 12, 2026 ended without major moves. The S&P 500 closed at 7,348 (-0.86%), DAX lost 0.18% to 24,293. Intel gained +2.7% as the day's winner, while Target dropped -5.5% after analyst downgrades. In such a sideways market, it's mainly theta sellers – option sellers – who profit. Time works for them: with each passing day without significant price movement, part of the time value of the sold options decays. Covered call strategies and iron condors earned today, while many speculative long positions lost value.
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marketsMay 12, 20261 min read
Evening Wrap: Sideways Market May 12, 2026 – Theta Wins
S&P -0.86%, DAX -0.18%. A quiet trading day where theta sellers won.
Sources
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Key Options Terms
A quick refresher on the terms that keep coming up in options stories like this one.
- Implied Volatility (IV)
- The volatility the market expects. Rising IV makes options more expensive; falling IV makes them cheaper. IV guide →
- The Greeks
- Delta, Gamma, Theta and Vega measure how an option reacts to price, time and volatility. Greeks explained →
- Open Interest
- The number of open contracts. Heavy open interest at a strike flags an important price level. Read the chain →
- Premium
- The price of an option. Sellers collect it; buyers pay it for the right to trade. Basics →
- Exercise & Assignment
- What happens at expiration when an in-the-money option is actually settled. Learn more →
- Defined Risk
- Strategies such as spreads where the maximum loss is known from the outset. Strategies →
Options & the News – Quick Answers
How do stories like this move option prices?
News mostly works through expected movement: when uncertainty rises, so does implied volatility and therefore premium – often regardless of direction.
Do I have to bet on direction to benefit?
No. Defined-risk strategies such as the iron condor or a covered call trade volatility and time value rather than an exact direction.
I am a beginner – where should I start?
Start with our beginners guide and the glossary before putting real capital to work.
Related reading
Dig deeper into the terms and strategies from this article.
Strategy
Options Strategies Overview
From covered calls to iron condors – every strategy explained.
Learn moreFundamentalsThe Greeks Explained
Delta, Gamma, Theta and Vega made intuitive.
Learn moreFundamentalsImplied Volatility (IV) Guide
Why IV is the single biggest driver of an option’s price.
Learn moreLearningRisk Management
Position sizing, stop-outs and portfolio protection.
Learn moreLearningOptions for Beginners
The complete starting point for options trading.
Learn moreBrokersOptions Broker Comparison
Find the right trading platform for options.
Learn moreAuthor
Thomas
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Retail Trader
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