Does Theta Decay Affect In-the-Money, At-the-Money, and Out-of-the-Money Options Equally?

No, Theta decay is not equal across moneyness. It is typically highest for at-the-money (ATM) options because they have the highest extrinsic value.

Deep in-the-money (ITM) and deep out-of-the-money (OTM) options have lower Theta because their value is primarily intrinsic or nearly zero, respectively, leaving less extrinsic value to decay.