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Equity Options vs Currency Future options - volatility is nearly half of stock indices
Undefined risk vs Defined risk
A negative theta means the position will lose value due to time decay, while a positive theta means the option will make money due to time decay. Reduce or eliminate Time Decay which is quantified by Theta. Investors that buy options are negatively impacted by theta decay, since there is less uncertainty around the underlying security's price at expiration and less intrinsic value in the option's premium. Theta is a measure of change in the value of an option compared with the continuous decrease in time to expiry. Also known as time decay.
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