How Does ‘Time Decay’ (Theta) Affect the Value of a Cryptocurrency Call Option?

Time decay, or Theta, is the measure of the rate at which an option's value erodes as the expiration date approaches, all other factors being equal. Options are wasting assets, and Theta is always a negative value for the option holder.

This means that every day, the option loses some of its extrinsic (time) value. The effect of time decay accelerates significantly as the option nears its expiration date.