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Why Do OTM Options Still Have a Non-Zero Premium?

OTM options have a premium due to time value, which reflects the chance of becoming ITM.
Greeks.Live22.11.25

Why Do OTM Options Still Have a Non-Zero Premium?

OTM options have a non-zero premium because they possess time value. This time value reflects the possibility that the underlying asset's price will move favorably before expiration, turning the option ITM.

As long as there is time remaining, there is a chance of profit, hence the non-zero premium.

How Does the Moneyness (ITM, OTM, ATM) of an Option Affect Its Bid-Offer Spread?
Does an OTM Option Have Any Value at All?
Can an OTM Option Ever Have a Higher Time Value than an ITM Option?
Why Does an ITM Option Have a Higher Premium Compared to an OTM Option with the Same Expiration?

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