Four times the time to expiry is roughly half the daily theta, so decay accelerates as expiry approaches. The same at-the-money position pays about twice the daily theta with one day left as it does with four.
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Part 1 of the course, Option basics and use cases: what an option is, how calls and puts pay off, and every Greek with the intuition before the maths. See the course →
The full picture
3 hours 24 minutes with the man who traded these
Sven Hubens, ten years an options market maker at Optiver and Maven, adjunct faculty at The Options Institute at Cboe.
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