Plz tell me about theta decay formula, plz tell if nifty 22000 pe Greek theta is 20, what is it means?
I’m not an expert but in simple terms theta means time decay of option value till expiry. For e.g. If u buy option of 22000CE at a premium of 5000 with 50 lot value, with 7 days of expiry left then in this case assuming theta of 20 means option value loses 20 Rs per day whenever an option value nears it’s expiry.