How Does High Realized Volatility Counteract the Effect of Theta?

High realized volatility means the underlying asset's price is moving significantly, leading to a rapid change in the option's Delta and potentially increasing its intrinsic value. If the asset moves favorably and deep into the money, the gain in intrinsic value can exceed the loss from Theta decay.

However, this is not a true counteraction of Theta, but rather a gain from the underlying price movement overwhelming the time decay effect. Theta is always present.