How Does a High Strike Price Affect the Call Option's Time Value? ⎊ Path

How Does a High Strike Price Affect the Call Option’s Time Value?

A high strike price, making the call option further OTM, generally reduces the option's time value compared to an ATM option. This is because the probability of the underlying price reaching the strike price is lower, decreasing the potential for profit.

How Does a Decrease in Time Value Affect the Price of an OTM Option?

How Does Buying a Further Out-of-the-Money Option Limit the Risk of a Sold Option?

How Does Changing the Strike Price Affect the Premium of a Call Option?

What Is the Difference in Maximum Loss between Buying an OTM Option and Buying an OTM Future?

How Can Traders Profit from the Widening of the Volatility Skew Using Options Spreads?

How Does the Shape of the Volatility Curve Influence the Theta of OTM Options?

What Is an ‘Out-of-the-Money’ (OTM) Option?

How Does the “Skew” of Implied Volatility Affect the Pricing of OTM Crypto Options?

Glossar

Strike Price

Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.