Theta Filter (Ultra): Filter Options by Time Decay Per Day
Theta measures how much an option loses to time decay every day. Use the Ultra-tier Theta filter to find contracts that pay you the fastest.
What theta tells you
Theta is the dollar value an option loses to time decay every day, holding everything else constant. For sellers, theta is what you collect each day the underlying doesn't move.
A −0.05 theta on a put means the option's premium drops about $5 per day (per contract). As the seller, that $5 accrues to you.
Where to find it
The Theta filter is Ultra-tier only because it requires per-contract Greek data refreshed in real time. You'll find it in the filter sidebar under "Greeks" on both:
The slider runs from −1.0 to 0.0 (long premium is always negative).
How to use the Theta filter
The most common use is to find options where time decay is paying you fast.
| Goal | Theta range | Notes |
|---|---|---|
| Find any meaningful decay | −0.10 to −0.02 | Reasonable income contracts |
| Maximize daily premium | −0.30 to −0.10 | Often near ATM, higher gamma |
| Slow-and-steady | −0.05 to −0.02 | Far OTM, low risk |
Note: theta is a per-share number. To get the dollar decay per day, multiply by 100.
A worked example
You want to find calls that decay at least $10/day, with limited risk:
- Open the Call screener.
- Set Theta to −0.30 to −0.10 (= $10–$30/day).
- Set Delta to 0.15–0.30 (controls risk).
- Set Volume ≥ 200.
Sort by Theta (most negative first) for the best decay candidates.
Theta + DTE
Theta accelerates non-linearly as expiration approaches. A 60-DTE option might have −0.02 theta; the same option at 7 DTE could be −0.15. The Theta filter and the DTE filter are partners:
- Long DTE + high theta = unusually rich premium (often signals event risk).
- Short DTE + high theta = normal — you're capturing the steep end of the decay curve.
Common mistakes
1. Treating theta as guaranteed income. Theta is what you'd collect if nothing else moves. A 5% stock drop can wipe out a month of theta in an hour.
2. Ignoring theta sign. Sellers want more negative theta (faster decay = more for them). A theta of 0.0 is useless to a seller.
3. Comparing theta across stock prices. A −0.10 theta on a $50 stock is meaningfully different from −0.10 on a $500 stock as a percent of capital. Always compare in percent of premium too.
Where to go next
- Pair with Delta filter for risk control.
- Read Gamma filter (Ultra) — the partner of theta.
- Use the Theta Decay Calculator for what-ifs.
Frequently Asked Questions
Is the Theta filter free?
Theta, Gamma, and Vega filters are Ultra-tier features because they require real-time per-contract Greek data. Delta remains free on every plan.
What does negative theta mean for sellers?
Theta is always negative for option holders, meaning the option loses value over time. Since you're the seller in the wheel strategy, that decay accrues to you as profit each day the underlying stays put.