Intrinsic value is the current worth of an option if exercised now; time value decreases as expiration nears. Theta measures the daily decrease in an option's time value as it approaches its ...

What is Theta? What is option time decay? How does time decay work? These are common questions of beginning options traders. Theta is the Greek term used to denote option time decay. Theta is one of ...

In options trading, the price of an option (known as its premium) is sensitive to the passage of time—known as time decay. As the time to expiration nears, the time value of the option decreases, ...

The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...

Options Greeks are one of many factors that are important to understand when trading options. The aptly named "Greeks," are measurements relative to risk named after Greek letters. The measurements ...