time decay

noun

The depreciation in value of an options contract as it nears its expiration.

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Meanings

noun
  1. businessThe depreciation in value of an options contract as it nears its expiration.
Cite this entry
APA

time decay. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/time%20decay

MLA

“time decay.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/time%20decay. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “time decay,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/time%20decay.

Source: time decay on Wiktionary, CC BY-SA 4.0.