Options Trading Tutorial

when theta price in option trading take into option price?

is it end of the day, middle of the day or next day.

Public Comments

1. On a trading platform the theta shown should be as of the moment. If you are looking at end of day option prices the listed theta is also the end of day. Anything else would just be screwy.
2. Theta acts continuously. The value of an option at 10:30 a.m. is less than the value of the same option at 9:30 a.m., the value of an option at 11:30 a.m. is less than the value of the same option at 10:30 a.m., etc. Usually theta is small enough that you will not see any impact due to theta on an hour by hour basis except for at the money options a day or two before expiration.