I know "Time decay accelerates on nearing expiry". But I want to know the rate of acceleration.
- How curvy is the theta curve? Answers could be like,
Provided IV is stable, in a 3-month contract,
Month 1: time value losses 10%
Month 2: time value losses 30%
Month 3: time value losses 60%
- Does theta work following a standard curve every time? Or it has other factors to affect?
- It works same for all OTM, ATM and ITM? I read OTM options decelerate last month. Is that true?