Greeks
Theta
Daily time decay value
What is Theta?
Theta The rate at which an option loses value each day from time decay. All else equal, options lose theta daily. Sellers benefit from theta; buyers fight it.
Complete Definition
The rate at which an option loses value each day from time decay. All else equal, options lose theta daily. Sellers benefit from theta; buyers fight it.
Example
Theta of -0.05 means the option loses $5 per day (per contract) from time decay alone.
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