Hi, I read that theof a call option is between 0 and 1.
But in situations, where the price of a call option decreases even as the price of the underlying stock increases it tends to imply that the delta of such an option is negative since delta is the sensitivity of the option price to the stock price.
Where am I going wrong in my reasoning? OR do we calculate delta assuming all other variables that can affect the option price to be constant? OR is it that the delta is possitive but other variables causing the stock price to decrease are stronger than delta?
I was reading that the time value of an option cannot be negative. But I also found that it can be negative in the case of a deep ITM European Put option on a non-dividend paying stock? So, is the time value of such an option negative? Also, if it is negative can it be a cause for theta of such an option to be positive?