re: dealforfree ... bohemian
Hi Bohemian ... whenever I am addressing the poster directly rather than simply the general topic, I have always personalised as a matter of courtesy.
Firstly, you are right that THETA varies ... and specifically in anticipation I qualified ... "The question of THETA is as broad as is long and no doubt any attempt to quantify will start a row here ... the purpose is to table a number for comparision purposes."
THETA is the TIME PREMIUM or reward for the WRITER of the Option Contract.
THETA is not exponential in the true sense as you state. Originally, Option Contracts were for a three month period and Option Price Modeling sees 'time decay' at a continuous daily rate representing approx half of the TIME PREMIUM component decay over the first two months and the remaining half over the last one month ...
CFD's seem to have clear advantages over other forms of derivatives and opinion suggests these will overtake others over time ...
