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Strategies & Market Trends : Option Strategies

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To: "Ze-Bull" who wrote (2184)	10/15/2020 10:06:00 AM
From: robert b furman	Read Replies (1) of 2591

Hi Ze, I'd guess the theta differential is the result of different spreads between the Bid and Ask. I trade think and Swim platform. During the day with no put or call actually trading the bid/ask dance all around. Yesterday a Brks $60.00 call traded bid/ask 00.00 to .25, this morning it is trading bid/ask of 00.00 to .70 with tomorrow it expiring to zero. They do not make sense often - especially on thinly traded options. The result of the bid/ask spread widening today is an increased theta with two days of trade left (including today) while yesterday with three days left, it had a smaller spread. Theta should go down as time passes is the usual spin on theta. I guess that's usually true, but the markets do fluctuate eh? Bob

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