# Theta

*Derivatives & Options — Finicade finance glossary*

The rate an option loses value as a day passes, all else equal — time decay. It's the price an option buyer pays for waiting, and the income an option seller collects for providing the insurance.

**Related terms:** [The Greeks](https://finicade.com/glossary/the-greeks), [Time Value](https://finicade.com/glossary/time-value), [Option Premium](https://finicade.com/glossary/premium)

**Taught in:** Hull Street — The Greeks, in Full

Source: https://finicade.com/glossary/theta