The phrase "time decay" refers to the concept that the value or importance of something decreases over time. It suggests that as time passes, the impact or value of something diminishes or becomes less significant. Full definition
Each strategy includes an illustration demonstrating the effect of time decay on the total option premium involved in the position. (cannontrading.com)
In addition, the option we purchased may also profit if coffee rises higher, but it may lose some value due to time decay if coffee doesn't rally enough. (cannontrading.com)
Many retail options traders lose money because they don't know how to overcome the drag on returns that is caused by time decay. (hedgefundhub.com)