Market Measures - October 14, 2020 - The Relationship Between Theta and IV


Oct 14 2020 6 mins   7
Theta and Implied Volatility (IV) have a direct linear relationship, meaning that when one goes up by a certain percentage, the other also goes up by the same percentage. Additionally, the larger the delta of the strangle, the larger the theta value of that strangle. Watch Tom and Tony dive into this relationship with the help of some research driven graphics.