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THETA DECAY

Theta Decay Simulator

See exactly how option premium erodes day by day as expiry approaches. The silent killer of option buyers — visualize theta decay before you hold overnight.

Theta Decay Simulator

Current Premium

477.72

Value at Expiry

0.00

Total Decay (pts)

477.72

Total Decay (₹)

35,829

per lot (75 shares)

Premium Decay Over Time

Day 0 (30 DTE)Expiry Day

Day-wise Decay Snapshot

DayDTEPremiumTheta/dayDecay (₹)
030477.729.09682
723410.9410.05754
1515323.8811.91893
228229.9915.481161
237214.0716.391229
273136.6823.871790
29177.3239.742981
3000.000.000

HOW IT WORKS

Simple steps to get your result

1

Enter Option Details

Input spot, strike, DTE, implied volatility, and risk-free rate.

2

Choose CE or PE

Select call or put option type.

3

See Day-by-Day Decay

View a premium decay chart and table showing how much value evaporates each day.

FAQ

Frequently asked questions

Why does theta decay accelerate near expiry?+

Time value decays non-linearly — it decays slowly when there is lots of time, and then rapidly in the final 7-10 days. This is because uncertainty (hence premium) collapses as expiry nears.

Should I avoid buying options near expiry?+

Buying options in the last week is very risky due to rapid theta decay. Unless you are expecting an immediate move, the odds strongly favour sellers in the final days.

Does theta decay happen on weekends?+

Yes — options premium typically accounts for weekend decay, meaning Monday open often shows 3 days of theta already priced in (Friday's theta × 3).

What is a good IV to use?+

Use the current implied volatility from NSE's option chain for the specific strike. For Nifty ATM options, IV typically ranges between 10% and 25%.

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