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What Is the Impact of Time Decay on the Delta of an OTM Option?

Time decay causes the Delta of an OTM option to decrease (move closer to zero).
Greeks.Live22.11.25

What Is the Impact of Time Decay on the Delta of an OTM Option?

Time decay (Theta) generally causes the Delta of an Out-The-Money (OTM) option to decrease (move closer to zero). As time passes, the probability of the OTM option becoming ITM decreases, which is reflected in a lower Delta.

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