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If the Underlying Price Moves $1, How Does the Intrinsic Value Change?

Intrinsic value changes by $1 for an ITM option, and $0 for an OTM option.
Greeks.Live22.11.25

If the Underlying Price Moves $1, How Does the Intrinsic Value Change?

If the underlying price moves $1, the intrinsic value of an In-The-Money (ITM) option will change by exactly $1. The intrinsic value of an Out-The-Money (OTM) option will remain at $0 until the price move is large enough to make it ITM.

How Does ‘Time Decay’ (Theta) Affect the Value of an ITM Option Compared to an OTM Option?
What Are the Practical Implications of Trading ITM, ATM, and OTM Options?
How Does Delta Change as an OTM Call Option Moves Deeper OTM?
What Is the Difference between an ITM, OTM, and ATM Call Option?

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