All things being equal, the closer an option gets to expiration, the lower the option price.

Name: All things being equal, the closer an option gets to expiration, the lower the option price.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

This is because as the option gets closer to expiration, there is less time for the stock price to move in a favorable direction for the option holder, reducing the chance of the option being profitable. Therefore, the option price decreases as expiration approaches.

All Things Being Equal, the Closer an Option Gets to Expiration