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What Is the Maximum Value of an Option’s Time Value?

The maximum time value occurs when the option is At-The-Money.
Greeks.Live22.11.25

What Is the Maximum Value of an Option’s Time Value?

The maximum time value of an option occurs when it is At-The-Money (ATM). At this point, the uncertainty of the final price is highest, maximizing the time value component.

The actual dollar amount depends on factors like implied volatility and time to expiration.

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