S&P BSE Sensex Index
Education

Part 8 Trading Master Class with Experts

14
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.

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