Tag: theta decay

Introduction:Understanding the relationship between strike price and time decay is crucial for options traders. Time decay refers to the gradual loss of an option's value as it moves closer to its expiration date. The strike price, on the other hand, determines the price at which the underlying asset can be bought or sold. In this article, we will explore the intricate connection between strike price and time decay in options trading, helping you make informed decisions to maximize your returns. Time Decay and Options Pricing:Time decay is a significant factor...