Time Value

Discussion in 'Options' started by SCI new york, May 14, 2010.

  1. is there a formula for figuring out the time value deterioration of OTM options
     
  2. MTE

    MTE

    Theta is the letter that denotes time decay. To calculate it use any of the option pricing models, such as Black Scholes.
     
  3. thanks!
     
  4. spindr0

    spindr0

    Google "theta formula" and you'll get the dirty details :)