That's correct! Time decay, also known as theta, is a key factor in options trading. It refers to the rate at which the value of an option decreases over time, assuming all other factors remain constant. As time passes, the option's value erodes, and its likelihood of expiring worthless increases.

In the case of a naked call, time decay works against the seller (the investor who sold the call option). While the option's value decreases over time, the investor's potential loss remains unlimited, as they are still obligated to sell the underlying asset at the strike price if the option is exercised.

Here's a summary of how time decay affects options:

- Call options: Time decay reduces the value of call options, making them less valuable to the buyer and less risky for the seller.

- Put options: Time decay reduces the value of put options, making them less valuable to the buyer and less risky for the seller.

- Sellers (writers) of options: Time decay works in their favor, as the option's value decreases over time, reducing their potential liability.

- Buyers (holders) of options: Time decay works against them, as the option's value decreases over time, reducing their potential gain.

Keep in mind that time decay is just one factor affecting options trading. Other factors like volatility, interest rates, and the underlying asset's price movement also impact options pricing and risk.