There's definitely no sex in "Teddy," but there is the idea of sex. More importantly, there's the idea of avoiding sex, love, or any personal attachment whatsoever, physical or emotional. Teddy tells Nicholson that in his previous lifetime he "met a lady" and "sort of stopped meditating" (4.73). The implication is that he, as an adult in this previous lifetime, was romantically and/or sexually involved with someone, and as a result did not make the spiritual progress he should have. The idea is that sex, along with other physical pleasures, is detrimental to spiritual growth. Teddy certainly isn't making the same mistake this time – he's staying away from all females.