Learn

You asked: what is theta

Theta

What a day costs the holder of an option and pays its writer — the rate at which time value falls away. It grows towards expiry rather than running evenly, so the last week of a contract's life carries far more of the decay than the first.

Mayawhat these words mean

Maya reads the desk’s written explainers and the glossary. She holds no market data at all, so she can say what a thing is and cannot say what it is doing today.