An option with more IV has more time decay?

Discussion in 'Options' started by crgarcia, Jul 20, 2008.

  1. As it has more extrinsic value?
     
  2. LOL
     
  3. dmo

    dmo

    Yes.

    When an option expires, it will have zero time value. So on any given date before expiration, the more time value it has, the faster it will decay. Which is the same as saying that the higher the IV, the faster the time decay.
     
  4. PLEASE don't trade options with real money yet, dude. :cool: