Option ThetaThe option theta is a Greek that is said to be able to measure the affect of time decay on an option contract. It identifies how much value an option will lose for every 1 day that passes. This is assuming that there is no change in price or volatility.
For example if you buy a $5 option with a theta of $.1 then the option should be worth $4.9 1 day later if everything else remains the same. The option theta is bigger the closer an option gets to expiration. An option that has months before expiration will have much lower theta, or decay at a slower rate, then one that has weeks before expiration. Another thing that that is common with theta is that theta will often get bigger the closer the options strike price gets to the price of the stock. 
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