What is the Extrinsic Value of a Stock Option?

Curious about the extrinsic value of stock options? In this short [What is the Extrinsic Value of a Stock Option?] video , we dive into this important concept in the stock market world. The extrinsic value, also known as time value, is the portion of an option's premium influenced by factors other than the underlying stock price, such as time until expiration, volatility, and interest rates. Learn how these factors affect the extrinsic value with examples and charts. Discover why high volatility can increase the extrinsic value and how it decreases as the expiration date approaches. Perfect for those looking to understand options trading better!

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Option Strategies For Beginners With Examples | Episode #1 https://youtu.be/QSjdlU5ah8U
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