What Is the Term for an Option That Is Almost Worthless? ⎊ Path

What Is the Term for an Option That Is Almost Worthless?

The term for an option that is almost worthless is a "penny option" or a "deep out-of-the-money" (DOTM) option. It is an option with a very low premium, consisting of minimal time value and zero intrinsic value.

Does an ITM Option Always Have Time Value?

How Is the Tax on a Section 1256 Option Calculated If It Expires Worthless?

What Is the Term for an Option with a Strike Price Far from the Current Market Price?

What Is the Typical Delta Range for a Deep In-The-Money Call Option?

Explain Why a Deep Out-of-the-Money Option Has a Low Premium

What Is the Delta of a Deep Out-of-the-Money Put Option?

Does an ATM Option Have Intrinsic Value?

What Is the Relationship between an option’S’moneyness’ and Its Time Value?

Glossar

Minimal Time Value

Value ⎊ The theoretical price component attributed to time for an option contract that is extremely far out-of-the-money or extremely close to expiration, approaching zero in both cases.