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 ...

The "Greeks" are an essential toolkit for options investors and traders. These mathematical calculations, each named after a ...

Steve Chen focuses on the delta and theta decay when setting up bear calls spreads. He sticks to delta rates between 0.16 to 0.20 to collect premium and mitigate risk. He also keeps his contracts ...

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 ...