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Total: 4 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. 5.6- Theta (Short Options)
(Courses/Undergraduate 200 Level)
... fighting time decay while option sellers benefit from the passing of time. An option position that is ITM will have minimal time decay which will be mostly offset by the intrinsic value because the odds ...
Monday, 23 November 2009
3. 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
4. 1.6- Option Prices (Premium)
(Courses/Freshman 100 Level)
The price of an option, also known as the premium, is made up of two factors: Intrinsic Value (moneyness) The intrinsic value of an option contract is the part of the option price that is In-the-Money ...
Monday, 16 November 2009

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