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.

What Is the Typical Delta Range for a Deep In-The-Money Call Option?
Is It Possible for a Short-Term OTM Option to Have a Higher Absolute Theta than a Long-Term ITM Option?
What Is the Concept of ‘Zero-Sum’ in Futures Trading?
How Does the “Peg Stability Module” (PSM) Help Maintain DAI’s 1 Dollar Peg?
Explain Why a Deep ITM Call Option Has a Delta Close to 1
Does a Change in the Risk-Free Rate Have a Greater or Lesser Impact on OTM Option Delta than on ATM Option Delta?
What Are the Risks Associated with Holding non-US Dollar Assets in a USD Stablecoin Reserve?
What Is the Relationship between Theta and Gamma?

Glossar