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Does the Time Value of an ATM Option Decrease Linearly or Non-Linearly over Time?

Non-linearly; decay is slow initially, but accelerates dramatically in the final weeks before expiration.
Greeks.Live14.11.25

Does the Time Value of an ATM Option Decrease Linearly or Non-Linearly over Time?

The time value of an ATM option decreases non-linearly over time. The decay is slow initially for long-term options but accelerates dramatically in the final months and weeks before expiration.

This non-linear, accelerating decay is characteristic of Theta, and it is most pronounced for ATM options due to their high time value component.

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