In this video, Ryan O’Connell, CFA, FRM, explains Intrinsic vs Extrinsic Value in options trading and options pricing using real examples. You’ll learn the difference between intrinsic value and extrinsic (time) value, and how both change over time for in-the-money (ITM) and out-of-the-money (OTM) call options. Whether you’re new to options trading or looking to sharpen your pricing knowledge, this video breaks it down clearly. Watch until the end to see how these values impact real options strategies.
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Chapters:
0:00 – Intrinsic Value of Options Explained
1:35 – Extrinsic Value of Options Explained
2:13 – Intrinsic & Extrinsic Value Over Time – ITM Call
4:24 – Intrinsic & Extrinsic Value Over Time – OTM Call
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
