Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that time decay is exponential and accelerates as expiration draws closer. The rate of ...

Today let's talk about one of the 'Greeks' in options trading that doesn't get enough coverage -- and that's Theta. Theta measures how much value an option will lose each day due to the passage of ...

One of the most important concepts an options strategist must master before having a chance at being successful is time decay. Options are considered wasting assets in the sense that they expire after ...

Time decay – also called theta – is a measure of the value of an options contract as it nears its expiry date. An option’s value will decrease the closer it gets to the expiry date while being out of ...

Time value is an important factor in options trading. If you intend to take a long option position, you must not pay too much for time value. This is because time value of an option becomes zero at ...

Time decay refers to the loss in time value of an option with each passing day to its eventual value of zero at expiry. You should short options that will most likely expire worthless to capture time ...

Time decay is the natural reduction in an option's price as expiration approaches Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that ...