The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Which options have the fastest time decay?” This podcast comes on the heel of yesterday’s podcast where we were talking about options with different maturities and why they were priced differently. Now, the question is – Okay. If there's options that are priced differently because of their time until expiration, which option contracts have the fastest time decay? And naturally, the options with the fastest time decay would be the options that theoretically are closing or expiring the soonest. That could be today if you’re trading options during the week of expiration or during the day of options expiration. Those contracts would theoretically have the most possible time decay because there’s only one day left or zero days left. They basically expire at the end of the day. Or if you’re trading option contracts that are a week out, if those are the closest to expiration, they w