Comment on Theta

R P HANS commented on 10 Jul 2015, 05:46 AM

Sir,
Again it is very simple and crisp explanation. Thanks.
Is the theta value is same for all stocks keeping all other factors same? What u have shown is drop in the premium verses time. What will be the theta value verses time? I believe that it will change inversely and exponentially with time.
Theta is friend for the seller is well understood, so if we sell a deep OTM option so that the probability of its expiring worthless is more and to pocket the premium at the expiry, may be a safe deal?

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