Learn with ETMarkets: All you need to know about premium decay in options trading

Similarly, Options also have expiry (Monthly and weekly), and the Extrinsic value of Options becomes Zero. Just like in the case of cars, the premium keeps dropping exponentially every day.

Disclaimer : Mytimesnow (MTN) lets you explore worldwide viral news just by analyzing social media trends. Tap read more at source for full news. The inclusion of any links does not necessarily imply any endorsement of the views expressed within them.