[Nitin Bhatia]

context:Doubt considering OTM values in this decay analysis
Hi NB Sir/ALL serious learners,

in option chain premium analysis video of you tube example

when market was at 10600 you have considered the premium value of the OTM where 10800ce and 11000ce as they are otm call side and highest OI built up

at same time when market was at 10600 ——– 10000PE and 10200PE are also OTM( but didnt considered values??? …..but there are blank values??????????????
how to consider those values
i am confused …can any one help where iam missing the point…or my question itself is wrong

[Nitin Bhatia]

I hardly concentrated on values in that video so can’t answer, I consider the average decay in premium and I don’t think any difficulty in that. But sir, my question is, instead of considering premium for the decay I am concentrating on Theta values of OTM contracts with highest OI and comparing them, that even worked for me also, just want to know whether doing this is right or not?

[Nitin Bhatia]

For premium decay, I consider three OTM contracts on both PUT and Call with highest OI.

[Author]

Posts