Behaviour of THETA in relation to TIME REMAINING TO EXPIRATION – With Past DATA and CHARTS

The following is the behavior of Theta in relation to Time to Expiration:For ATM option, Theta increases as an option gets closer to the expiration date.On the other hand, for ITM & OTM options, Theta decreases as an option is approaching expiration.The above effects are particularly observed in the last few weeks (about 30 days) before expiration.Using the same past actual data as shown in the previous post on the behavior of Delta, namely:Options...

Read More