🎁Day 3.The longer the expiration date, the smaller the time value. Can you believe it?
@Tiger_Academy:
HelloWelcome to Tiger Academy - 「Options Greeks Column」episode 3.In our previous article, we mentioned that due to the presence of the gamma coefficient, at-the-money options make money the quickest. However, at the same time, as the expiration date approaches, at-the-money options also face the highest time decay risk.So, how can one manage the risk of time decay, and is there a scenario where options with longer expiration dates have smaller time values?Today, we will address these questions by exploring another Greek value of options - theta. First, let's understand what an option's theta value is.1. what is the Theta of an option?Theta represents the change in the option price due to the passage of time. In other words, it indicates how much the option price decreases with each passing