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option-theta

  1. Nicole Seaman

    YouTube T4-18: Option theta

    Option theta (Θ) is the rate of change of the option's value with respect to the passage of time; it is a measure of time decay. The pure derivative returns theta in dollars per one year, such that it is common to divide by 250 (trading days) or 365 (calendar days). Theta is naturally negative...
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