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.
Glossar
Extrinsic Value
Volatility ⎊ This component represents the portion of an option's premium driven by market uncertainty regarding the underlying crypto asset's future price movement.
Volatility
Measurement ⎊ Volatility, in quantitative finance, is the statistical measurement of the dispersion of returns for a given financial asset, typically quantified by the annualized standard deviation of its price movements.
Delta
Parameter ⎊ In options theory, this measures the rate of change of an option's price relative to a one-unit change in the price of the underlying asset, often termed the first derivative of the option price with respect to the asset price.