Skip to main content

When Does Time Decay Accelerate Most Significantly?

Time decay accelerates most significantly in the final 30 to 45 days leading up to the option's expiration date. This acceleration is due to the decreasing probability of a favorable price move in the remaining short time.

Options with a longer time to expiration decay more slowly.

Why Is High Gamma Considered a Double-Edged Sword for an Option Trader?
How Does Theta Decay Accelerate as an Option Approaches Expiration?
How Does Theta Affect the Value of an Option as Expiration Approaches?
Why Does Time Decay Accelerate in the Final Month before Expiration?