Importance of Time Decay (Theta)
Another vital concept in options trading is Theta, which measures how much the value of an option decreases as it approaches expiry — this is called time decay.
Buyers of options lose value daily because the time value erodes.
Sellers (writers) benefit from time decay as they collect premium that melts away if the market remains range-bound.
Another vital concept in options trading is Theta, which measures how much the value of an option decreases as it approaches expiry — this is called time decay.
Buyers of options lose value daily because the time value erodes.
Sellers (writers) benefit from time decay as they collect premium that melts away if the market remains range-bound.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.