Night.win
  • Start Here
  • Welcome
  • Community Standards
  • Members of High Conduct
  • What is Night?
  • FAQ
  • Intro to Options
    • Options Primer
      • Terminology
      • Payoffs
      • Long Call
      • Long Put
    • Options Prices Explained
    • Volatility Explained
    • The Greeks Explained
      • Delta
      • Vega
      • Rho
      • Theta
  • Derivatives & Night
    • Black-Scholes Pricing
  • Tokenomics
    • The NIGHT token
    • The Nmoney Token
    • Contract Tokens
    • Token Allocations
  • Implementation
    • Protocol Architecture
Powered by GitBook
On this page
  1. Intro to Options
  2. The Greeks Explained

Theta

The theta of an option measures how much value it will lose as a result of the passage of time. The theta is typically quoted as the dollar amount which an option will lose if time is fast-forwarded one day. For example, if the theta of an option is $5.00, the option will be worth $5.00 less in one day's time, assuming all else equal.

PreviousRhoNextBlack-Scholes Pricing

Last updated 2 years ago