Option Greeks
Theta
Definition
What is Theta?
The estimated loss in an option's value from the passage of time, all else equal.
Example in practice
How This Looks in Practice
A short-dated option may lose value rapidly through theta decay.
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Related Terms
Option Greeks
Delta
The estimated change in an option's price for a small change in the underlying price.
Option GreeksGamma
The rate at which an option's delta changes as the underlying price changes.
Option GreeksVega
The sensitivity of an option's price to a change in implied volatility.
Real Estate InvestingReal Estate
Land and buildings held for use, rental income, development, or appreciation.