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What Is the Intrinsic Value of an Options Contract?

The immediate profit realized if the option were exercised now; the portion of the option's price that is in-the-money.
Greeks.Live22.11.25

What Is the Intrinsic Value of an Options Contract?

Intrinsic value is the immediate profit a trader would realize if the option were exercised immediately. For a call option, it is the greater of (Current Price – Strike Price) or zero.

For a put option, it is the greater of (Strike Price – Current Price) or zero. It represents the portion of the option's price that is in-the-money.

What Is the Intrinsic Value of a Call Option?
What Is the Difference between an ‘In-the-Money’ and ‘Out-of-the-Money’ Option?
What Is the Term for the Intrinsic Value of an Option?
What Is the Distinction between Intrinsic Value and Time Value in an Option Price?

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