Can we talk about THETA please.

T

tradingpoker

Looking at the picture below:

https://gyazo.com/179f748bfbe063e128fd4644150c83a7

Lets take the 69 calls. THETA is saying -0.58, so this means 58 cents will be taken away from the current strike price right, if the stock did not move for the rest of the day?

If true when does this get taken out? Throughout the day, end of day, start of day?

Does anyone trade THETA into the weekend? How do we know how much THETA comes out at the weekend?

Thank you for any help.
 
tradingpoker said:
Looking at the picture below:

https://gyazo.com/179f748bfbe063e128fd4644150c83a7

Lets take the 69 calls. THETA is saying -0.58, so this means 58 cents will be taken away from the current strike price right, if the stock did not move for the rest of the day?

If true when does this get taken out? Throughout the day, end of day, start of day?

Does anyone trade THETA into the weekend? How do we know how much THETA comes out at the weekend?

Thank you for any help.
More...
I would head to Dest Journal, he’s a genius with options in my humble view. Seriously, he’s good!
 
It does not get "taken out". It means if none of the assumptions to the model change, that is the expected decay in value over the course of the day with the stock at the same price. The Greeks are estimates, not hard values. As IVol and the stock change in price, some of the price change is not related to just time decay.
 
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