Options expire. Because of this, time remaining is of great importance.
is the rate at which the premium on the option decreases over time. The more time available, the greater the premium.
Larger thetas, along with greater premium levels, coincide with higherenvironments.
Additionally, the rate of an option’s decay increases as we near.
We can extend theta by rolling; studies have shown that this has a positive impact on both profitability and probability.