<p>Charm (also known as “delta decay”) is the decay of delta with the passage of time. So, Charm measures how much the delta of an option contract changes over time. ATM delta will always be 50, regardless of how near-term the expiration of the contract is. So while Delta indicates how much the option’s price will change for a $1 change in the underlying stock price, Charm tells us <i>how</i> that Delta changes as time progresses.</p><figure class="image"><img src="https://lh7-us.googleusercontent.com/ToRT-lztRlUZBiBejNx2HBiT3AdehRUGBSpVmajQuyC99SNn9ZxAsqmjDIitFPq0swjJRLgenBAj5qW3uqt8Hj4cEGV36yjOelB_3lzwDfkCO66gffKcBeufg4FHCJXZ9iTa5jZIe9KS0nlTnB26sQ0"></figure><p>Charm can be positive or negative. Positive charm means the delta of the option increases as time passes, while negative charm means the delta decreases over time. It's important to note that charm exposure is influenced by changes in implied volatility. High volatility can amplify charm effects, while low volatility may dampen them.</p><h2>Related Articles:</h2><ul><li><a href="https://unusualwhales.com/information/what-are-greeks">What are Greeks?</a></li><li><a href="https://unusualwhales.com/information/what-is-vanna">What is Vanna?</a></li><li><a href="https://unusualwhales.com/information/what-is-gamma-exposure-gex">What is Gamma Exposure (GEX)?</a></li></ul>

This article covers what the Greek Charm is, and what it measures

What is Charm?

The Discord options_screener Command Step-by-Step and How To Spot Institutional Option Trades With It

How to Plot the 0DTE Straddle Breakeven Prices on Your Periscope Chart and Why You Should Care

Earnings Date Differences Explained: Gaining Confidence in Your Unusual Whales Data

Delta Airlines $DAL Unusual Options Activity Lookback

What is the ETF Overview?

How to Fix 404 Errors when Using AI Tools with the Unusual Whales API

Theoretical Value

Book Value

Market Capitalization (Market Cap)

Mutual Fund

Par Value

Volatility Index (VIX)

Price-to-Earnings Ratio

Yield Curve

Value Stock

Treasury Note (T-Note)

Treasury Bond (T-Bond)

Treasury Bill (T-Bill)

Stock Split

Short Selling

Short Interest

Risk Tolerance

Revenue

Recession

Synthetic Short

Synthetic Long

Synthetic Position

Over-the-Counter (OTC) Market

Money Market Fund (MMF)

Stop Order

Market Order

Limit Order

Interest Rate Risk

Periscope FAQ

How To Interpret Periscope Net Gamma Exposure

Quick Custom Alert Presets

Institutional Investor

Retail Investor

IPO (Initial Public Offering)

Hedge Fund

Growth Stock

Futures Contract

Fundamental Analysis

Technical Analysis

Float

Short Squeeze

Flow Review February 12, 2025: Unusual Activity on $KWEB and a Follow Up Trade

Flow Review June 15, 2024: How we used Unusual Whales to know when Roaring Kitty exited his GameStop, $GME calls

Flow Review June 5, 2024: A Breakdown of Roaring Kitty's GameStop $GME options activity, and how we tracked it

Flow Review January 30, 2025: Identifying Put Writes with $AMZN and tracking Unusual Options Activity in $CLS

Flow Review September 4, 2024: Super Micro Computer, $SMCI, and its unusual trading days before major news event

Flow Review September 11, 2024: PLTR and DELL join the S&P500, a look back at their options activity beforehand

Flow Review September 2024: Unusual Shorting Flow and how to Spot PUT Writing with $CRWD

Flow Review November 2024: Trading around Crypto stock $CLSK around Trump's Election

Flow Review November 2024: Unusual Options Activity around Microsoft $MSFT and $AI news

Probability of Profit (POP)

Flow Review $COF August, 2024: Following a $COF trader using Historical Flow

Flow Review $SMCI, October 2024: Walking through SMCI Unusual Flow

Flow Review $TIGR, $PDD, $BABA October 2024: Breaking down Unusual Options Flow in Chinese Stocks, and how Options helped push the Chinese stock market frenzy