Time Decay
外汇网2021-06-19 14:12:30
89
The ratio of the change in an option's price to the decrease in time to expiration. Since options are wasting assets, their value declines over time. As an option approaches its expiry date without being in the money, its time value declines because the probability of that option being profitable (in the money) is reduced. Also known as "theta" and "time-value decay".
Time decay of an option begins to accelerate in the last 60 to 30 days before expiry, provided the option is not in the money. But in the case of options that are deep in the money, time value decays more rapidly. The market finds these options too expensive compared to other strike prices or futures. As such, the holders of deep-in-the-money options nearing expiry discount the time value to attract buyers and in turn realize the intrinsic value. The greater the certainty about an option's expiry value, the lower the time value. Conversely, the greater the uncertainty about an option's expiry value, the greater the time value.
标签:
- 上一篇: Put To Seller
- 下一篇: Risk Graph
随机快审展示
推荐文章
- 黑马在线:均线实战利器 8453 阅读
- 短线交易技术:外汇短线博弈精讲 3827 阅读
- MACD震荡指标入门与技巧 3983 阅读
- 黄金操盘高手实战交易技巧 4306 阅读
- 做精一张图 3073 阅读
热门文章
- 港币符号与美元符号的区别是什么啊? 23760 阅读
- 我国各大银行汇率为什么不一样啊? 14072 阅读
- 越南盾对人民币怎么算的?越南盾对人民币汇率换算方法是什么 9708 阅读
- 百利好环球欺诈,不给出金,无法联系。 9106 阅读
- 黑马在线:均线实战利器 8453 阅读