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Futures & options
Also called: Time decay, Option theta
Theta is how much an option's price is expected to fall from one day passing, with everything else unchanged. It is the time decay an option buyer pays and an option seller collects.
An option priced at ₹100 with a theta of −5 would be worth about ₹95 a day later if the underlying and implied volatility did not move.
Theta is largest for at-the-money options and speeds up as expiry gets close.
Theta is how much an option's price is expected to fall from one day passing, with everything else unchanged. It is the time decay an option buyer pays and an option seller collects.
An option priced at ₹100 with a theta of −5 would be worth about ₹95 a day later if the underlying and implied volatility did not move.
No. Theta describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.