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How Does a Very Deep ITM Option’s Theta Compare to an ATM Option?

DITM option's Theta is much lower than an ATM option's Theta.
Greeks.Live22.11.25

How Does a Very Deep ITM Option’s Theta Compare to an ATM Option?

A very deep In-The-Money (DITM) option's Theta is significantly lower than an At-The-Money (ATM) option's Theta. DITM options have very little time value to lose, as their value is mostly intrinsic, whereas ATM options have the maximum time value.

What Is a “Deep In-the-Money” Option?
What Does It Signify When Implied Volatility Is Much Higher than Historical Volatility?
How Does Gamma Affect a DITM Option?
What Is the Practical Difference between a DITM Option and Owning the Underlying Asset?

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