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Which Option Position Benefits from High Theta?

A short option position (seller) benefits from high Theta, as the option's value decreases, leading to profit.
Greeks.Live03.11.25

Which Option Position Benefits from High Theta?

A short option position (selling a call or a put) benefits from high Theta. When an option is sold, the seller receives the premium upfront.

Positive Theta means the value of the option decreases each day, which is a profit for the seller who is short the option. This benefit is maximized for At-the-Money options close to expiration, where Theta decay is fastest.

Does Theta Benefit the Buyer or the Seller of an Option?
What Is “Time Decay” (Theta) and How Does It Benefit the Call Seller?
Why Is a Trader Who Sells Options Typically Interested in a Decrease in Implied Volatility?
Why Does Theta Benefit the Option Seller but Harm the Option Buyer?

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