Let's Calculate Option Theta for Delta Airlines

Theta refers to the rate of decline in the value of an option over time. If all other variables are constant, and option will lose value as time draws closer to its maturity. Theta, usually expressed as a negative number, indicates how much the option's value will decline every day up to maturity.

[tejasagar]

Hello, Great explanation reg. theta...If possible pl. guide us through theta decay w.r.t delta calculation.

[rudyredline]

Those look somewhat high thetas, would those be the yearly thetas or the daily ones? If daily theta, did you divide by 259 or 365. My understanding is that theta is calculated on a yearly basis but exchanges present theta on a daily basis, as investors find daily theta information more useful in making buying/selling decisions. Good presentation.

[sachinshrivastava]

Good video ...but u can elaborate more

[amrutapowar]

Sir plz provide the delta calculation in excel.