Does theta decay every minute?

From this point on, THETA decay continues to accelerate rapidly, leading to a significant decrease in the option's value. This rapid decay persists until the expiration date is reached, at which point the option expires worthless if it has not been exercised.

Theta decay, a phenomenon observed in options trading, refers to the gradual decrease in the value of an option as it approaches its expiration date. This decline in value is due to the passing of time, as the option holder's right to exercise the option diminishes with each passing day.

For options that are deeply out-of-the-money, meaning they have little to no intrinsic value, theta decay behaves differently. In these cases, the decay may not accelerate significantly as the expiration date nears.

In contrast, options with a shorter time to expiration tend to experience a more pronounced THETA decay. For instance, a contract with 60 days left until expiration may initially see a relatively slow decrease in value due to theta decay.

However, as the expiration date draws closer, the rate of theta decay accelerates. Around the 30-day mark, the decay becomes more pronounced, as the option holder's window of opportunity to exercise the option narrows.