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Theta position of call spread

Quantitative Finance Level 2

The stock is currently trading at 20. If you are long the 20-22 call spread (same expiry), what is your theta position?

Collecting Theta, OTM options have more theta to collect Theta neutral, net option position is 0. It depends on the time to expiry Paying Theta, OTM options have less theta to collect.

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by Calvin Lin

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