# Does the Underlying Asset's Price Movement Influence the Acceleration Rate? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## Does the Underlying Asset’s Price Movement Influence the Acceleration Rate?

The underlying asset's price movement does not directly change the mathematical acceleration rate of Theta decay, which is a function of time. However, price movement changes the option's moneyness , which in turn affects the option's Theta value.

If the price moves the option to ATM, its Theta will be higher and decay faster than if it remains deep OTM.

- [What Is the Role of Intrinsic Value in Determining Moneyness?](https://learn.greeks.live/path/what-is-the-role-of-intrinsic-value-in-determining-moneyness/)

- [What Mathematical Operation Is Equivalent to ‘Scalar Multiplication’ on an Elliptic Curve?](https://learn.greeks.live/path/what-mathematical-operation-is-equivalent-to-scalar-multiplication-on-an-elliptic-curve/)

- [What Is the Typical Theta Value for a Long-Dated Option versus a Short-Dated Option?](https://learn.greeks.live/path/what-is-the-typical-theta-value-for-a-long-dated-option-versus-a-short-dated-option/)

- [How Does Time Value Affect an Option’s Moneyness?](https://learn.greeks.live/path/how-does-time-value-affect-an-options-moneyness/)

- [How Does the “Moneyness” of an Option Affect Its Premium Value?](https://learn.greeks.live/path/how-does-the-moneyness-of-an-option-affect-its-premium-value/)

- [How Does the Concept of “Moneyness” (ITM, ATM, OTM) Affect the Value Breakdown?](https://learn.greeks.live/path/how-does-the-concept-of-moneyness-itm-atm-otm-affect-the-value-breakdown/)

- [What Is the ‘Base Point’ in the Context of Elliptic Curve Cryptography?](https://learn.greeks.live/path/what-is-the-base-point-in-the-context-of-elliptic-curve-cryptography/)

- [How Does a Point on the Curve Relate to the Public Key?](https://learn.greeks.live/path/how-does-a-point-on-the-curve-relate-to-the-public-key/)

## Glossar

### [Price Movement Influence](https://learn.greeks.live/area/price-movement-influence/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Catalyst ⎊ Price Movement Influence, within cryptocurrency and derivative markets, represents the quantifiable impact of specific events or data releases on asset valuations, often exceeding expectations based on historical volatility metrics.

### [Price Movement](https://learn.greeks.live/area/price-movement/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Momentum ⎊ Within cryptocurrency derivatives and options trading, momentum describes the rate of change in price, reflecting the strength and direction of prevailing trends.

## Discover More

### [What Happens to the Black-Scholes Valuation If the Underlying Asset Pays a Dividend?](https://learn.greeks.live/path/what-happens-to-the-black-scholes-valuation-if-the-underlying-asset-pays-a-dividend/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Happens to the Black-Scholes Valuation If the Underlying Asset Pays a Dividend?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Collateralized-Cross-Asset-Hedging-Mechanisms-in-Decentralized-Finance.webp)

Dividends lower the stock price, so the model is adjusted by subtracting the present value of dividends to accurately price the option.

### [How Is the 'Underlying Asset' Defined in a Derivatives Contract?](https://learn.greeks.live/path/how-is-the-underlying-asset-defined-in-a-derivatives-contract/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the 'Underlying Asset' Defined in a Derivatives Contract?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-Decentralized-Finance-Protocol-Execution-Via-Cross-Chain-Atomic-Swaps.webp)

The asset (stock, commodity, index, etc.) whose value determines the derivative contract's price.

### [Can a Crypto Index Be an Underlying Asset for an Option?](https://learn.greeks.live/path/can-a-crypto-index-be-an-underlying-asset-for-an-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Crypto Index Be an Underlying Asset for an Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Microcosmic-Examination-of-Automated-Market-Maker-Mechanism-Parameters-in-Decentralized-Finance-Oracles.webp)

Yes, a crypto index tracking a basket of assets can be the underlying asset, allowing bets on overall sector performance.

### [Define "Gamma" in Options Trading and Its Relationship to the Underlying Asset's Price Change](https://learn.greeks.live/path/define-gamma-in-options-trading-and-its-relationship-to-the-underlying-assets-price-change/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define "Gamma" in Options Trading and Its Relationship to the Underlying Asset's Price Change](https://learn.greeks.live/wp-content/uploads/2025/10/Microstructure-of-a-Decentralized-Autonomous-Organization-Governance-Module-Aperture-Signaling-Volatility-Skew.webp)

Gamma measures the rate of change of Delta; high Gamma means Delta changes rapidly, making the option highly sensitive to price moves.

### [Does Basis Risk Increase or Decrease with the Correlation between the Derivative and Its Underlying Asset?](https://learn.greeks.live/path/does-basis-risk-increase-or-decrease-with-the-correlation-between-the-derivative-and-its-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does Basis Risk Increase or Decrease with the Correlation between the Derivative and Its Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-Staked-Asset-Volatility-and-Multi-Asset-Hedging-Mechanisms.webp)

Basis risk decreases with higher correlation because the derivative and underlying prices move more closely together.

### [How Does a Deep ITM Call Option Behave Similarly to Holding the Underlying Asset?](https://learn.greeks.live/path/how-does-a-deep-itm-call-option-behave-similarly-to-holding-the-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Deep ITM Call Option Behave Similarly to Holding the Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Geometric-Abstraction-Sculptural-Form-Mimicking-Decentralized-Autonomous-Organization-Governance-Structure.webp)

Deep ITM Call has a Delta near 1.0, mimicking the price movement of the underlying.

### [Can a Hash Be Used to Prove Ownership of a Derivative Token without Revealing the Underlying Asset?](https://learn.greeks.live/path/can-a-hash-be-used-to-prove-ownership-of-a-derivative-token-without-revealing-the-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Hash Be Used to Prove Ownership of a Derivative Token without Revealing the Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Sleek-Ovoid-Blockchain-Governance-Module-Reflection-Demonstrating-Impermanent-Loss-Mitigation-Strategies.webp)

Yes, when combined with a zero-knowledge proof, a hash can prove knowledge of the asset's data without revealing the data itself.

### [How Does the Volatility of the Underlying Asset Influence Initial Margin Requirements?](https://learn.greeks.live/path/how-does-the-volatility-of-the-underlying-asset-influence-initial-margin-requirements/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Volatility of the Underlying Asset Influence Initial Margin Requirements?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Digital-Asset-Mechanism-Visualization-Simulating-Volatility-Surface-Geometry.webp)

Higher volatility increases the potential loss, forcing the CCP to demand a larger initial margin buffer.

### [Does the Dividend of the Underlying Asset Affect a Covered Call Strategy?](https://learn.greeks.live/path/does-the-dividend-of-the-underlying-asset-affect-a-covered-call-strategy/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does the Dividend of the Underlying Asset Affect a Covered Call Strategy?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Probe-Vector-Penetrating-Composite-Structure-Signaling-Decentralized-Exchange-Futures.webp)

Yes, a large dividend can trigger early exercise and assignment as the buyer attempts to capture the dividend before the ex-date.

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