ClearPath Trader

Option Theta

Time decay of an option’s value. Negative theta for long options means value erodes as expiration approaches, all else equal.

Category: Technical · Complexity: ★★★☆☆ (3/5)

Tags: overlay, volume, technical

Option Theta chart illustration

Option Theta is part of the ClearPath Encyclopedia of Indicators — 184+ technical and fundamental models explained with visuals, so you can study an indicator before you put it on a live chart.

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