Theta
The rate of change of an option price with respect to the passage of time, measured in dollars per day.
Explanation
Example
A call with theta of -0.05 loses $5 per contract per day from time decay alone, all else being equal.
The rate of change of an option price with respect to the passage of time, measured in dollars per day.
A call with theta of -0.05 loses $5 per contract per day from time decay alone, all else being equal.