D dmo Jul 20, 2008 #3 Yes. When an option expires, it will have zero time value. So on any given date before expiration, the more time value it has, the faster it will decay. Which is the same as saying that the higher the IV, the faster the time decay.
Yes. When an option expires, it will have zero time value. So on any given date before expiration, the more time value it has, the faster it will decay. Which is the same as saying that the higher the IV, the faster the time decay.
D daniel5198 Jul 21, 2008 #4 Quote from crgarcia: As it has more extrinsic value? More... PLEASE don't trade options with real money yet, dude.
Quote from crgarcia: As it has more extrinsic value? More... PLEASE don't trade options with real money yet, dude.
