What is theta decay and why does it hurt option buyers?

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I bought options but they kept losing value even though the stock did not move much. Is this theta decay?

#options-and-futures

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Market Hawk

Trader · 15 days ago

Yes. Theta is time decay — every day that passes, option loses some value even if the underlying stays flat. This is why being an option buyer requires the stock to move quickly in your direction.

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Price Action Pro

Trader · 15 days ago

Theta accelerates as expiry approaches. An option with 30 DTE loses much less time value per day than one with 5 DTE. As a buyer, give yourself enough time — avoid buying options close to expiry.

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What is theta decay and why does it hurt option buyers?

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