✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: https://geni.us/options-trading-pdf 💰 Get up to $3,000 when you open and fund your first tastytrade brokerage account: https://geni.us/tastytrade 🔥 Learn data-driven options strategies: https://optionsforbeginners.teachable.com/p/data-driven-options-strategies ==== The theta of an option is one of the four primary "option greeks." The other three are delta, gamma, and vega. An option's theta is a measure of the option's expected price decay with the passage of one day (called time decay), holding the stock price and implied volatility equal. Intrinsic value of an option is stable, but an option's extrinsic value decays (decreases) steadily with the passage of time. At expiration, an option will only consist of intrinsic value (if any). In this video, I explain what an option's theta is and show numerous trade examples to help visualize the decay of option extrinsic value as time passes. Additionally, I discuss more advanced concepts, such as what position theta tells you about the expected performance of entire option positions. Be sure to leave a comment down below with any questions you may have! === RECOMMENDED VIDEOS/RESOURCES === Time Decay Explained: https://youtu.be/AthV2e0MPkA Stock Options Trading 101: https://youtu.be/3bELT5FZCic Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo tastytrade Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA Options Trading 101: https://youtu.be/3bELT5FZCic tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.