About Theta Options

About Options Option trading and evaluation is a major part of our economy and drives the price of existing equities. We use Theta and Gamma as major components in our evaluation techniques.

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Theta shows how much value the option price will lose for every day that passes.
An option contract has a finite life
This Time Value represents uncertainty
Each day erodes the time value
If equity price remains constant, option value declines

In the last remaining days of an option's life, it loses value quite rapidly.

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