Answer: Theta is negative for long positions in ATM options

**Analysis of each statement:** - **A**: "Theta is positive for long positions in ATM options" - **FALSE**. Theta is negative for all long option positions because time decay works against the holder. - **B**: "Gamma is large for ITM options" - **FALSE**. Gamma is highest for at-the-money (ATM) options and decreases for both in-the-money (ITM) and out-of-the-money (OTM) options. - **C**: "Theta is negative for long positions in ATM options" - **TRUE**. All long option positions have negative theta due to time decay. - **D**: "Delta of ITM puts tends to 1" - **FALSE**. Delta of ITM puts tends to -1 (negative because puts move opposite to the underlying). Therefore, only statement C is correct.

Author: LeetQuiz Editorial Team