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    August 13, 2019

    How Does Option Theta Decay Work?

    Options traders often refer to the delta, gamma, vega, rho and theta of their option positions. Collectively, these terms are known as the Greeks, and they provide a way to measure the sensitivity of an option’s price to quantifiable factors. Today, I want to focus on theta.  Theta is the time-decay component of the option pricing model. Click the […]

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