How come my short vertical put has negative theta?

Discussion in 'Options' started by solk, Aug 17, 2017.

  1. To echo Kim's assertion about strike selection ....here is another way to dissect whether position is short or long theta and this takes into consideration the skew..... Given 1 exp month, strip out the intrinsic, and net out the "juice" aka extrinisic part, if you are negative, you are bleeding out theta daily. HEre is a snapshot of $147 credit position with a $3 theta coming into your account daily.Both strikes are strictly extrinsic.
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    #31     Aug 22, 2017