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 option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...

You might have observed that the option prices suddenly change near expiry. Many beginners don’t understand it, and they get shocked when the option they bought loses value rapidly, even […] ...

Options Greeks are one of many factors that are important to understand when trading options. The aptly named "Greeks," are measurements relative to risk named after Greek letters. The measurements ...

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 ...

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 ...

Finding optimal swing trades can be tricky when the stock market is chopping in a range. However, volatility option strategies that benefit from time decay can be a great choice, especially if implied ...