I am having trouble understanding the pricing of options. I feel dumb that I have to ask this but I am anyway cause I just don't get it. I trade options from time to time and I understand the way the greeks work and effect prices. I can't tell you anything about the black scholes formula but I get the idea. Can someone please explain in plain english how the greeks can put a price on options at the same time that supply and demand should be doing that? At any point in time the price of a stock or future is supposed to represent all available information causing an equilibrium between buyers and sellers... right? So why can't an option, being that everything is transparent, be automatically priced into the market. For example, why is there a mathmatical formula for theta when as time passes people would naturally pay less for the option thus bringing down the price as it gets closer to expiration?