Options
Time Decay (Theta)
The rate at which an option loses extrinsic value as expiration approaches, all else being equal. Theta accelerates as expiration nears and benefits option sellers while eroding value for option buyers.
Options
The rate at which an option loses extrinsic value as expiration approaches, all else being equal. Theta accelerates as expiration nears and benefits option sellers while eroding value for option buyers.