“Learn Call Options and Put Options in Financial Markets” S:1 E:2 Options Foundation Time Decay and Implied Volatility

S:1 E:2 Options Foundation Time Decay and Implied Volatility Time Decay and Implied are two fundamental concepts in Options. All Options have an Expiry Date, so Options lose value as they approach this Date. And because Options expire, the price of an Option is impacted by the Volatility of the underlying asset. Time Decay and Implied Volatility impacts Option buyers and sellers differently, so understanding whether they benefit or hurt your position is key