## Comment on Theta

Okay sir,

Take this example(imagined not real) of CALL OPTION

Spot 400

Strike 370

9 days to expiry

Status – DEEP ITM

Premium 25

Sir my question is if we playing a ITM OPTION

Then that option must have positive intrinsic value and positive time value

Say atlest 5 or 7 or 10 or whatever you say for time value

Intrinsic value = spot-strike=400-370=30 right

Then premium must be more than 30 for above case

But instead of >30 it is at 25

This driving me to this formula

Premium = (spot-strike)+time value

25=(400-370)+time value

Time value= 25-30=-5

Is this suggests the time value is in minus (i think not possible)

Premium must have ZERO or a positive mon ZERO NUMBER FOR both its content.

Sir this is really happend i was considering a stock option few days ago

Where ITM option premium was different from what we have knows…….

Thanks sir…..