Time Decay
The erosion of an option's value as time passes, all else equal.
Full Definition
Time decay accelerates as expiration approaches. For 0DTE, theta decay is extreme, especially for ATM options in the final hours.
The erosion of an option's value as time passes, all else equal.
Time decay accelerates as expiration approaches. For 0DTE, theta decay is extreme, especially for ATM options in the final hours.