Gold Futures
Education

Part 2 Candle Stick Patterns

20
The Role of Time in Options

Time value is one of the most important elements.

Unlike stocks, options lose value as they approach expiry. This is known as time decay (theta).

Option BUYERS are hurt by time decay.

Option SELLERS benefit from it.

This is one reason why selling options is a common strategy for generating income.

Disclaimer

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.