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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: cfoe who wrote (1677)	7/30/2001 7:54:32 PM
From: BDR	of 5205

<<What is rate at which the time premium will deteriorate?>> Theta: Represents the loss in value an option will experience due to the passage of time. Theta is usually expressed on a per day basis. For example, if an option has a theta of 0.25, the option will lose about $0.25 a day, provided the underlying stock price and volatility hold constant. This site gives a theta of -0.08 (will lose 8 cents a day) for the Aug 60 calls: finance.lycos.com

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