The measure of change in the value of an option relative to the continuous decrease in time to expiry.
A measure of the sensitivity of the price of an option to a change in its time to expiry.
Ratio which indicates the dependency of the option value on changes in the remaining term.
Warrants lose time value as they approach maturity. Theta measures this daily loss, all other factors remaining equal.
The ratio of a change in an option price to a small change in the option's term to maturity. In other words, the rate by which an option premium will decrease over time, all other things being equal. (See also Vega).
Theta measures the result of time decay on an option. As time passes, options will lose time value and the theta indicates the degree of this decay. Both call and put options are wasting assets and therefore have a negative theta. Note: the decay of options is non-linear in that the rate of decay will accelerate as the option approaches expiry. Theta will reach its highest value immediately before expiry.
A measure of the rate of change in an option's theoretical value for a one-unit change in time to the option's expiration date. See also Time decay
The Greek measurement of the time decay of an option.
The change in the time value of an option between points in time.
The rate of change of the value of a derivative or portfolio with time... more on: Theta
Style of Maze composed of passages arranged in concentric circles, where usually the start or end is in the center. Name comes from the circular shape of the capital Greek letter Theta. See also Omega.
the 8th letter of the Greek alphabet
The rate of decrease of an option premium over time.
The stock option looses in dollars per day due to time decay.
The option sensitivity which refers to the time decay of options. Options lose value very slowly up until approximately 40 days or so, when the option begins to deteriorate at an increasing rate.
In options theory, the effect of a change in time to expiration on the theoretical values of calls and puts, measured in the loss of value per day. Also known as 'time decay'. Defined as V/t, where 'V' is the value of the option and 't' is the time to expiry.
Theta represents the loss in value an option will experience due to the passage of time. As a quantification of time decay, theta is usually expressed on a per day basis. For example, if an option has a theta of minus 0.25, it will lose about 25 cents per day provided that the underlying stock price and volatility hold constant.
Is the sensitivity of an option premium or price relative to changes in time. This characteristic tends be viewed on an instantaneous basis in financial literature and on a daily change basis in practice.
A measurement of how much an options price decay's for every one day that passes.
Measure of change in an option exposure that results from the passage of time.
Factor sensitivity measuring a portfolio's first order (linear) sensitivity to the passage of time
The measurement of the time decay of a position.
the change in the premium for a unit change in time
The Greek letter used to represent phase angle.
option risk parameter that measures the speed of time decay of the option premium.
The rate at which the price of an option changes over a period of time (e.g. one day)
This is a measure of the sensitivity of an option price or value relative to a change in its time to expiry. The longer the time remaining until expiration, the higher the time value.
The rate at which option loses value as time to maturity decreases. Also referred to as the time decay of an option. See also Greeks
The rate of change of option premium for a given change in the number of days to expiry.
The rate of change in an option price, corresponding to a change in the option's time to maturity. For example, an option premium should decrease over time.(See also Vega).
The rate of change of the value of an option with respect to time. options
The ratio of the change in an option's price to the decrease in its time to expiration.
It is the rate of change of the value of the portfolio with respect to the passage of time with all else remaining the same. Theta is sometimes referred to as the time decay of the portfolio.
The derivative of the option price equation with respect to the remaining time to expiration of the option. A measure of the sensitivity of the value of the option to the passage of time.
The sensitivity of theoretical option prices with regard to small changes in tim...
Also called time decay, the ratio of the change in an option price to the decrease in time to expiration.
energy peculiar to life which acts upon material in the physical universe and animates it, mobilizes it and changes it; natural creative energy of a being which he is free to direct toward survival goals. The term comes from the Greek letter theta (), which the Greeks used to represent thought.
The rate at which an option loses value as time passes. It is usually expressed in points lost per day (as a negative number), when all other conditions remain the same.
The rate of decrease over time of an option premium.
Shows the change in the price of an option (change in the premium price) over time (per time unit). Mathematically, this corresponds to the first derivative of the option premium based on time factor.
The sensitivity of an option's value to a change in the amount of time to expiration.
The measure of the change in an option's premium given a change in the option's time until expiration. Equal to the change in the option's premium divided by the change in time to expiration.
A measure of how a portfolio's value changes as a consequence of the passage of time.
The sensitivity of a warrant's value to the passage of time. Theta, (% week) shows the theoretical fall in warrant price in 7 days with all other factors remaining the same.
Theta (uppercase Θ, lowercase θ) is the eighth letter of the Greek alphabet, derived from the Phoenician letter Teth. In the system of Greek numerals it has a value of 9. In Classical Greek θ represented an aspirated voiceless dental plosive , but in Koiné and later dialects it became a voiceless dental fricative .