Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that time decay is exponential and accelerates as expiration draws closer. The rate of ...

What is Theta? What is option time decay? How does time decay work? These are common questions of beginning options traders. Theta is the Greek term used to denote option time decay. Theta is one of ...

Intrinsic value is the current worth of an option if exercised now; time value decreases as expiration nears. Theta measures the daily decrease in an option's time value as it approaches its ...

For traders who thrive on quick decision-making and the adrenaline of fast-paced markets, options trading is best.

In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Iron condors represent an option strategy that combines put and call vertical spreads to create flexible opportunities for investors trading options. To appreciate why iron condors may offer appeal to ...

Managing pairs trade the POWR Options way will likely manage to increase the probability of profit. We have discussed in several previous articles the benefits of a pairs trade approach. A pairs trade ...

Time decay is the natural reduction in an option's price as expiration approaches Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that ...