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Total: 5 results found.

1. Introduction
(OBB Prodigy!/Theta Burn)
... strike price and pays a premium to do so (the extrinsic value of the option) but where losses are limited to the premium plus the equity portion (the intrinsic value of the option), unlike margin borrowing). ...
Saturday, 13 February 2010
2. 1.8- LEAPS
(Courses/Freshman 100 Level)
... option contract would be. Recalling the material from lesson 1.6, as the expiration date approaches the extrinsic value of an option contract decays at a greater rate. Therefore, LEAPS limit the decay ...
Wednesday, 30 December 2009
3. 5.5- Theta (Long Options)
(Courses/Undergraduate 200 Level)
Theta (θ), better known as time decay, measures the theoretical loss of an option’s extrinsic value as the expiration date of the contract approaches. Theta represents the extrinsic (time) value ...
Monday, 23 November 2009
4. 4.1- Option Pricing Basics
(Courses/Undergraduate 200 Level)
... above and beyond its’ intrinsic value (in-the-money). An option that is out-of-the-money has only extrinsic (time) value. This topic was covered in lesson 1.6. The reason that OTM options have any ...
Thursday, 19 November 2009
5. 1.6- Option Prices (Premium)
(Courses/Freshman 100 Level)
... (ITM). Extrinsic Value (time value) The extrinsic value of an option contract is the part of the option price that is Out-of-the-Money (OTM). The intrinsic value is the real value of the option ...
Monday, 16 November 2009

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