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Which Option Type Has a Higher Theta Value, OTM or ATM?

ATM options typically have a higher Theta value in dollar terms.
Greeks.Live22.11.25

Which Option Type Has a Higher Theta Value, OTM or ATM?

At-The-Money (ATM) options typically have the highest Theta value (in absolute dollar terms) because they have the highest time value to lose. While OTM options are 100% time value, the dollar amount of time value is usually lower than that of an ATM option.

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