Value

Your money goes a really long way around here.

Tools

Award-winning tools to help you optimize trades.

Service

We're here to help. And we'll do whatever it takes.

OPEN ACCOUNT
Barron's Best for Options Traders
service@tradeking.com select@tradeking.com
877-495-5464
M-F 8am-6pm ET
M-F 8am-6pm ET

Time value

for a call or put, it is the portion of the option's premium (price) that exceeds its intrinsic value if it is in-the-money. By definition, the premium of at- and out-of-the-money options consists only of time value. It is time value that is affected by time decay as well as changing volatility, interest rates and dividends. Also termed Extrinsic value.