How does theta impact the pricing of options in the cryptocurrency market?

1 answers

• Dec 26, 2021 · 3 years ago
  When it comes to options pricing in the cryptocurrency market, theta is a key player. It represents the time decay of options, meaning that as time passes, the value of an option decreases. This is because the longer an option has until expiration, the more time it has for the underlying asset to move in a favorable direction. As a result, options with a longer time to expiration have higher premiums to account for this potential movement. Theta is just one of the many factors that influence option prices, but it's an important one to consider when trading in the cryptocurrency market.
  592296