What is Theta (Time Decay)?
Theta (Time Decay) (also called time decay) — The option greek measuring how much premium an option loses each day as expiry approaches, all else equal.
In simple terms
High theta hurts option buyers as expiry nears.
Why Theta (Time Decay) matters when you invest
Understanding theta helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Theta (Time Decay) — frequently asked questions
What is Theta (Time Decay)?
The option greek measuring how much premium an option loses each day as expiry approaches, all else equal.
What does Theta (Time Decay) mean in the stock market?
The option greek measuring how much premium an option loses each day as expiry approaches, all else equal. High theta hurts option buyers as expiry nears.
Can you give an example of Theta (Time Decay)?
High theta hurts option buyers as expiry nears.
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.