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Does ATM strike decay slower than some OTM strike?

Discussion in 'Options' started by iprome, Sep 16, 2017.

tommcginnis
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toonerdy said:
I think ...
The premium of all options goes to zero at expiration, ...
... and both go to zero, there must be some point at which their difference decreases.
... I think that the theta of an option with higher premium should always be more negative than the theta of a lower premium option with the same underlying and expiration. The reason I have such a problem believing ...
More...

Look at an options chain -- all the correct answers are there.

#11 Sep 19, 2017

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