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.
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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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
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.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
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.