Options trading part 4: Theta/time decay risk

Romano RNR
19 min readJun 6, 2022

Theta, commonly known as the “time decay” of an option contract, is our third risk consideration while trading options & delta-hedging

Theta (Θ) is an important risk to consider when trading options is time decay which is the loss in value of an option contract over time.

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Romano RNR

Derivatives trading, investing, cryptocurrency, stocks, forex, options & volatility - programmer & sysadmin