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Does IV Affect the Intrinsic Value of an Option?

IV affects time value, not the intrinsic value of an option.
Greeks.Live22.11.25

Does IV Affect the Intrinsic Value of an Option?

No, implied volatility (IV) does not directly affect the intrinsic value of an option. Intrinsic value is purely a function of the underlying asset's current price and the option's strike price.

IV only affects the time value (extrinsic value) component of the option's premium.

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