If I have a SPy call expiring tomorrow and currently sitting at $1.30 and if theta is -1.29 am I losing $1.29 tomorrow if the stock price didn’t move? Pretty much make my contract worthless? Thanks
with only a couple days to expiration theta will not be accurate. delta and gamma are most important right before expiration.
Is the stock ITM or OTM at expiration? If it is OTM obviously theta is -100% and it is worth $0. If it is ITM obviously theta will be not -100% and there is some value.
ScottishTrader on
Why did you not include the option detail?
How can we help answer this with any specificity without this detail?
2 Comments
with only a couple days to expiration theta will not be accurate. delta and gamma are most important right before expiration.
Is the stock ITM or OTM at expiration? If it is OTM obviously theta is -100% and it is worth $0. If it is ITM obviously theta will be not -100% and there is some value.
Why did you not include the option detail?
How can we help answer this with any specificity without this detail?