Today is month of january going on, my question is will time value in OTM options decrease as fast in feburary contract as it decreases in january contract?
Well. Checked in option calculator, keeping rest all equal; if theta value of jan series is -3, then for the same strike price feb series theta value comes to -2.7. So feb series time value decreases slower compared to jan series.
No. Since February contracts are having 28 more days than Jan expiry, the option price will fall slowly in Feb contract than Jan contract (talking about time erosion only).