Theta
(redirected from thetas)

Also found in: Dictionary/thesaurus, Medical, Wikipedia

0.01 sec.

Theta

The ratio of the change in an option price to the decrease in time to expiration. Also called time decay.

Theta

The decline in value of an option contract over the passage of time. Assuming all other factors (such as the price of the underlying security) remain constant, the price of the option will decline as the expiration date nears because it becomes less likely that the option will be in-the-money or out-of-the-money at expiration. Theta is an attempt to quantify this fact. It is important to note that because other factors do not always remain constant, the price of the option does not always decline according to the theta.

theta

The sensitivity of an option's market value relative to a change in the time to expiration. Theta is a measure of time decay and tends to grow larger as an option approaches expiration.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
Greeks Time Decay Vega			The Clearing Corporation The Conference Board The Curb The Desk The Harmonized Commodity Description and Coding System The Intelligent Investor the Maes The Outlook The Public The Securities Association Ltd. The Street The Touch the usual covenants The Value Line Investment Survey The Wall Street Journal Thebe Theft Insurance Theme Fund theme or festival center Theoretical Dow Jones Index Theoretical futures price Theoretical spot rate curve Theoretical Value Theorie des jeux Theta thetas thin corporation thin market thinly capitalized Thinly Traded Thinly Traded Security Third Baseman Third Cruzeiro Third Market Third Market Maker Third World Third-Country Dumping third-party beneficiary contract Third-Party Distributor Thirteenth Month thirteenth-month accounting period Thirty-Day Visible Supply Thirty-Day Wash Rule Thirty-Year Treasury Thirty/Three Sixty Thomas Edison Thomas J. Watson, Sr. Thomas Sowell Thomson Financial Threat of Condemnation Three Steps and a Stumble Rule			Theta Pro2serve Management Company, LLC Theta Radiation theta rhythm theta rhythm theta rhythm theta rhythm Theta series Theta series theta w theta w theta w theta w theta w theta wave theta wave theta wave Theta waves Theta waves Theta waves Theta waves Theta waves Theta Xi Theta-e Theta-function Theta-function Theta-series Theta-series theta-theta Theta/Delta Ratio thetagram thetas Thetawaves Thetawaves Thetawaves Thetes Thetes Thetford Grammar School Thetford Hill State Park Thetford Mines Thetford Mines Thetford Mines, Quebec Thetford Mines, Quebec thetic thetical thetically thetics Thetine Thetis Thetis THETN THETO Thetys Thetys Theucidides Theucidides Theudas Theuderic Theuderic Theuderich Theuderich Theudish

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Theta (redirected from thetas)

Theta
(redirected from thetas)