Comment on Theta

Kartik Padmanabhan commented on 23 Nov 2018, 10:28 PM

“Theta is expressed in points lost per day when all other conditions remain the same. ”
I have a doubt on this.
For an OTM CE, If Theta is (-6) on Friday at 3:30pm, what does it portend for Monday opening prices (all other things remaining same)?
Will premium drop by Rs 18 or by Rs 6? Does the B&S model factor in time decay for non trading days while throwing up the value for Theta, or does it not ?

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