Comment on Theta

Ravi commented on 24 Jun 2017, 06:38 PM

Hi Karthik

As mentioned above due to time decay premium decrease, but using Black and Schole Calc I found that for Deep ITM, PUT premium increases with time decay as the theta is +ve for deep ITM? How is it possible??

Can you Please explain. It means if we go long on Deep ITM Put then time decay will favour Long postions considering market remains static(value doesn’t change)??

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