When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information ...

Intrinsic value is the current worth of an option if exercised now; time value decreases as expiration nears. Theta measures the daily decrease in an option's time value as it approaches its ...

In options trading, the price of an option (known as its premium) is sensitive to the passage of time—known as time decay. As the time to expiration nears, the time value of the option decreases, ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Gordon Scott has been an active investor and technical analyst or 20+ years.

Theta measures how quickly an option’s time value decreases as it gets closer to expiration. Time value, part of an option’s extrinsic value, is influenced by time and volatility. Unlike intrinsic ...

When it comes to options trading, there is so much to keep in mind — from calls and puts (and whether they're short or long), but even that just scratches the surface. JARED BLIKRE: Welcome back to ...

Time value led drop in option premium is not a new thing to anyone. This is most popularly known as Theta Decay. Naturally Option Premium keep reducing in value with the passage of time. For an option ...