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Can an Option Trade at a Premium of Zero before Expiration?

Theoretically no, as it retains some time value, but practically yes, due to rounding or low liquidity.
Greeks.Live22.11.25

Can an Option Trade at a Premium of Zero before Expiration?

Theoretically, an option should not trade at a premium of zero before expiration because it always retains some time value, even if minimal. However, a far OTM option may trade for a price so low that it is rounded to zero, or due to low liquidity, no bid exists.

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