How bad is theta decay?

As options approach their expiration date, their time value begins to erode. This is a natural phenomenon that affects all long options, regardless of their underlying asset or strike price.

The rate of theta decay intensifies as the expiration date nears. This acceleration means that the value of the option can depreciate more rapidly towards the end of its life, potentially impacting the trader's profit potential.

BTCC, a prominent cryptocurrency exchange, offers a diverse range of services that cater to various trading needs. These include spot trading, which allows users to buy and sell cryptocurrencies at current market prices, and futures trading, which enables traders to speculate on future price movements.

The purchase of an option comes with an inherent aspect known as THETA value, which is inherently negative. This means that as time passes, the value of the option gradually decreases.

Theta decay is a consistent and predictable force in the world of option trading, offering traders a reliable factor to consider when making their investment decisions.