Skip to main content
Learn

Does an OTM Option Have Any Value at All?

Yes, it has extrinsic value (time value) due to the possibility of becoming ITM before the expiration date.
Greeks.Live02.11.25

Does an OTM Option Have Any Value at All?

Yes, an Out-of-The-Money (OTM) option can still have value, known as extrinsic value or time value. This value exists because there is still time for the underlying asset's price to move favorably and make the option ITM before expiration.

Can an Option Have Extrinsic Value but Zero Intrinsic Value?
Is It Possible for a Short-Term OTM Option to Have a Higher Absolute Theta than a Long-Term ITM Option?
Why Are Out-of-the-Money Options Often Cheaper to Buy?
How Does an Option’s Moneyness Affect Its Premium?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.