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How Does Theta Behave near Expiration for an ATM Option?

Theta accelerates sharply near expiration for an ATM option.
Greeks.Live22.11.25

How Does Theta Behave near Expiration for an ATM Option?

Theta accelerates significantly near expiration for an At-The-Money (ATM) option. ATM options have the highest time value, and as the expiration approaches, the uncertainty of the final price is resolved rapidly, causing the time value to decay at an increasing rate.

Explain the Concept of “Theta Decay” and Its Impact on an Option’s Premium
Does the Time Value of an ATM Option Decrease Linearly or Non-Linearly over Time?
How Does Theta Affect the Value of an Option as Expiration Approaches?
Why Does Theta Accelerate as an Option Approaches Its Expiration Date?

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