Comment on Application of Option Greeks

Karthik Rangappa commented on 22 Nov 2016, 10:46 AM

Well, in the first place when you write (sell) options you do not pay a premium, but rather receive the premium. The rate at which the premium will lose money on account of ‘Theta’ depends upon the theta of the strike. Usually, the effect of theta is experienced on a overnight basis. The acceleration of theta is higher as one approaches expiry.

I’d recommend you read more on theta here –

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