Indeks S&P BSE Sensex
Pendidikan

Part 8 Trading Master Class with Experts

15
Time Decay (Theta): The Silent Killer

Time decay works against option buyers and in favor of sellers.

As expiry approaches, the time value decreases.

Even if the price stays the same, the option loses value daily.

Weekly options lose value much faster than monthly options.

This is why many professional traders prefer option selling—because time decay works in their favor.

Penafian

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.