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 ...

Mathematical models are used by the financial industry to determine the theoretical value of an option based on key parameters such as the price and volatility of the underlying security, time to ...

What is Theta? What is option time decay? How does time decay work? These are common questions of beginning options traders. Theta is the Greek term used to denote option time decay. Theta is one of ...