Theta changes at
an exponential rate. In English, that means that the time value of any options
you’re holding will decay more quickly the closer those options are to
expiration. If you’re an option buyer, that means you want the move in the
underlying to happen sooner rather than later, because even if you’re right
about the direction of an underlying, those long calls you bought last month
might still be losers even if your stock makes a big move today, because once
you’re close to expiration there will be very little time premium left in those
calls....
