How Theta Decay Works In Options Trading | Theta Decay Kya Hota Hai | #optiontrading #stockmarket

how theta decay works in options trading | Theta Decay Kya Hota Hai | #optiontrading #stockmarket hey, Welcome to our latest video where we delve into the intricacies of option trading. Today, we're demystifying Theta Decay, a critical concept for any options trader to grasp. Whether you're a seasoned investor or just starting out, understanding Theta Decay can significantly enhance your trading strategy. Theta Decay, also known as time decay, is the gradual reduction in the value of an option as time passes. In simple terms, it's the erosion of an option's extrinsic value as it approaches expiration. But why does this happen, and how can you leverage it to your advantage? In this video, we'll break down the mechanics of Theta Decay and explore its impact on option prices. You'll learn how time decay accelerates as expiration approaches, causing options to lose value at an increasing rate. We'll also discuss the factors that influence Theta Decay, including volatility, interest rates, and underlying asset price movements. But Theta Decay isn't just a hurdle for option buyers—it's also an opportunity for sellers. By strategically selling options with high Theta values, traders can profit from the passage of time. We'll show you how to identify optimal trading opportunities and manage risk effectively in the face of Theta Decay. **DISCLAIMER** The videos are strictly for educational purposes and do not provide any advice/tips on Investment or recommend buying and selling any stock. We neither take Guarantee of profit nor stand responsible for any losses of any recipient. The recipients of this material should take their own professional advice before acting on this information the recipient is advised to read the information carefully before any investment. *** Disclaimer- Some contents are used for educational purpose under fair use. Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. All credit for copyright materiel used in video goes to respected owner. [ Thanks For Watching This Video ] Don't Forget To Like, Comment, Share & Subscribe