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Option Theta - is it always negative?
hi all, i've a derivative question/concept that puzzled me a bit: can option Theta be positive? if so, when and why?
i get that the definition of option theta as a change in the value of an option for a given change in time, assuming all else constant. as time passes (e.g. from t=0 to t=1), the time value of an option reduces, therefore option value reduces if all else constant, i.e. theta is negative.
but in the curriculum books, it states "typically, theta is negative for options", which for the life of me i can't figure out what scenario an option theta would be positive?
any help would be much appreciated, thanks!