Option Premium Components
The option premium (price) has two parts:
Intrinsic Value: The actual value if exercised now (difference between stock price and strike price).
Time Value: The extra amount traders pay for the potential of future movement before expiry.
As expiry approaches, time value decreases, a phenomenon known as time decay (Theta).
The option premium (price) has two parts:
Intrinsic Value: The actual value if exercised now (difference between stock price and strike price).
Time Value: The extra amount traders pay for the potential of future movement before expiry.
As expiry approaches, time value decreases, a phenomenon known as time decay (Theta).
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Details:
Contact : +91 7678446896
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Related publications
Disclaimer
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.