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What Happens to the Time Value of an ATM Option at Expiration?

The time value of an ATM option decays to zero at expiration.
Greeks.Live22.11.25

What Happens to the Time Value of an ATM Option at Expiration?

The time value of an At-The-Money (ATM) option decays completely to zero at expiration. Since an ATM option has zero intrinsic value, if it remains ATM at expiration, it expires worthless.

The buyer loses the entire premium, which was entirely time value.

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