Greeks

Charm Decay

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Delta changes caused by time passage

What is Charm Decay?

Charm Decay The practical effect of charm (delta decay) on options positions over time. As time passes, out-of-the-money options lose delta (move toward 0) while in-the-money options gain delta (move toward 1.0). This effect accelerates near expiration and drives significant hedging flows from market makers.

Complete Definition

The practical effect of charm (delta decay) on options positions over time. As time passes, out-of-the-money options lose delta (move toward 0) while in-the-money options gain delta (move toward 1.0). This effect accelerates near expiration and drives significant hedging flows from market makers.

Related Terms

Charm Delta Time Decay Gamma Exposure

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

Want to Learn More?

Explore our educational resources and analytics tools to deepen your understanding.

Read Full Guide

Charm All Terms Christmas Tree Spread

Learn Options Trading

Understanding Options Greeks Implied Volatility Guide How to Trade Options 0DTE Options Trading Options Glossary Strategy Guides Learning Center

Explore More Tools

Options Chain Real-time Greeks Greeks Heatmap Visual analysis Volatility Lab IV analysis Strategy Simulator Test strategies IV Intelligence 3D visualization Options Screener Find opportunities Historical Data Past snapshots Earnings Historical moves & IV 0DTE Analytics Same-day expiration