Does Time Decay Affect the Intrinsic Value of an Option?

No, time decay, measured by Theta, only affects the extrinsic (time) value of an option. The intrinsic value is purely determined by the difference between the underlying asset's current market price and the option's strike price.

This value is only subject to change if the underlying asset's price moves, not by the mere passage of time.

How Does Time Decay (Theta) Affect an ITM Option?
How Does Time Decay (Theta) Impact the Value of a Crypto Option?
Define “Extrinsic Value” and How It Relates to Time Decay
Which Type of Option (Call or Put) Is Generally More Affected by Theta?
How Does an Options contract’S’extrinsic Value’ Decay over Time?
What Role Does Theta Play in the Decay of an Option’s Extrinsic Value?
How Does the Concept of “Extrinsic Value” Relate to Theta Decay?
Which of the Two Values Is Most Affected by the Passage of Time?