Glossary · Options Foundations · E

Extrinsic (time) value in plain English.

Everything above intrinsic value — the price of the time and uncertainty left before expiration. This is the part that decays away.

Track

Options Foundations

11 terms in this track

Taught in

Moneyness, time, and what you're really paid for

In the index

46 of 129

Filed under E

Connections

8

Related terms mapped below

01

The idea, in context

How to read the picture above and where the Academy teaches it.

Reading the illustration

Time value melts slowly at first, then fast into expiry — the curve option sellers are paid by.

This definition usesExpirationIntrinsic value

In French: Valeur extrinsèque (temps)

Where it’s taught

Options Foundations

Moneyness, time, and what you're really paid for

“Moneyness, time, and what you're really paid for” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.

02

8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.

03

Where to go next

Understand it, try it with real numbers, then track it for free.

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