Stock Markets Exposed

Is there time decay on options over the weekend and on holidays when the stock market is closed?

Public Comments

1. Yes.
2. Options don't take holidays or weekend breaks.
3. I would have to say yes there is time decay, but how much would depend on the length of time till expiration and how close the market price is to the strike price. The greek letter that represents the amount a option decays per day, theoretically, is Theta. It is usually expressed in a negative number representing the decrease in price per day. This number will usually increase the last 30 days. Don't forget that only the extrinsic value will depreciate before expiration; the intrinsic value will remain until expiration, exercitation, or assignment.
4. Yes there is time decay over holidays and weekends. As the time gets closer and closer to expiration, the time value will experience decay. Remember, at options expiration ALL options of no time value. The only value they will have is intrinsic value and then only if the option is ITM.