Suppose you’re day trading and the underlying is going up. You have a want a put though as you think it’s going down long term.
If you bought a 0DTE put, and the underlying moves in the opposite just a little, the premium drops through the floor on you. However if you bought a 10DTE, the premium drops less.
Is this because of Theta? Since the 0DTE is now less likely to be ITM as time is rapidly ticking away, and the 10DTE still has some time to be ITM?
