Extrinsic Value
The portion of an option's price beyond its intrinsic value.
Full Definition
Extrinsic value reflects time remaining and implied volatility. For 0DTE options, extrinsic value decays rapidly throughout the day.
The portion of an option's price beyond its intrinsic value.
Extrinsic value reflects time remaining and implied volatility. For 0DTE options, extrinsic value decays rapidly throughout the day.