Comment on Theta

Raj commented on 26 Jun 2016, 01:08 PM

“Time moves in a single direction hence Theta is a positive number.”
“Theta is a friendly Greek to option sellers.”
I can’t relate any point here. Being Theta +ve, why do we take -ve value for Theta in a long position to calculate premium depending upon expiry.
You have shown examples while selling option. Can you please elaborate the same with a buying option as
1. Buying Call; Market is rising and Days are expiring, but the premium is rising.
2. Buying Put; Market is falling and Days are expiring, but the premium is rising

View the full comment thread »