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

A high strike price reduces the call option's time value as it is further OTM.
Greeks.Live22.11.25

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 the Distance of an OTM Option from the Current Price Affect Its Gamma?
What Is the Difference in Maximum Loss between Buying an OTM Option and Buying an OTM Future?
How Does Changing the Strike Price Affect the Premium of a Call Option?
What Happens to the Premium of an OTM Option at Expiration?

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