Comment on Theta

James commented on 23 Jul 2017, 07:30 PM

Sorry! I guess I couldn’t make myself clear. I am new to option trading so curious about theta decay while market is closed. For example, option premium of XYZ on Monday was-
High – 14.27,
Low – 7.42,
Close – 8.42
Of course, theta contributed to drop in price from 14.27 to 7.42 during the Monday session. But,
Q.) What will be open price of premium on Tuesday (assuming all other factors remain same)? Will it be 8.42 (Monday’s close) or something less due to theta effect?
Thanks & Regards

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