How Does a Shorter Expiration Date Affect an Option’s Premium?

A shorter expiration date results in a lower option premium. This is because the option has less time for the underlying cryptocurrency to make a favorable price move.

With less time, there is a lower probability that the option will become profitable or move deeper into the money. This reduction in time directly reduces the option's extrinsic (time) value.

Therefore, an option with only one week until expiration will be significantly cheaper than an option with the same strike price but three months until expiration.