💻 Trade Options with tastytrade ($100 - $2,000 Funding Bonus): https://geni.us/tastytrade ➥ Hypergrowth Options Strategy Course: https://geni.us/options-course ==== Time decay (extrinsic value decay) is an options trading concept that traders of all levels need to understand, especially beginners. Options are sometimes referred to as "decaying assets" as their prices are observed to decrease as time passes and they approach their respective expiration dates. While time decay may seem confusing, it actually makes complete and logical sense when it is explained clearly. In this video, my goal is to explain the time decay of options in the most understandable way so that you can understand why option prices decrease over time. I hope you feel more confident with your understanding of time decay after this video. Be sure to leave a comment down below with any questions you may have! === RECOMMENDED VIDEOS/RESOURCES === 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.