ApexVol
AAPL Select a tool or press Enter for Dashboard
Analysis Tools
Dashboard Enter Greeks Exposure Volatility Lab Greeks Heatmap Options Flow Earnings
Pricing

Time Decay

Option value loss from time passing

What is Time Decay?

Time Decay The reduction in option value as time passes. Accelerates as expiration approaches. Options lose about 1/3 of their value in the last 30 days, and 2/3 in the last week.

Complete Definition

The reduction in option value as time passes. Accelerates as expiration approaches. Options lose about 1/3 of their value in the last 30 days, and 2/3 in the last week.

Related Terms

Theta Extrinsic Value

Want to Learn More?

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

Learning Center
Theta All Terms Trailing Stop

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 Vol Monitor 3D visualization Options Screener Find opportunities Historical Data Past snapshots Earnings Historical moves & IV 0DTE Analytics Same-day expiration