Keep a decay ledger

An option shows theta of −0.08. You are short it. What does that number mean for you over the next day, if nothing else changes?

• You lose about 0.08 per share
• You gain about 0.08 per share
• You gain 8% of the option's value

Which part of an option's price can theta never touch?

• Extrinsic value
• Intrinsic value
• Time value