Theta accelerates exponentially in the final 30 days prior to expiration. Option buyers suffer from negative theta, while option sellers profit from time erosion.
Carl Brent Anthony Institutional Rule
When buying directional options, select contracts with at least 45–60 days to expiration to mitigate theta decay drag.
Cross-Market & Execution Note
Only options have theta decay; spot stocks, forex spot, and crypto spot have zero time erosion.