Glossary - Time Value
The portion of an option's total price or intrinsic value. The price or premium of an out-of-the-money option consists entirely of time value.



Glossary definition courtesy of Glenn R. Pafumi, CFA at OptionTraderOne
- Sponsored Advertisement -
This data is provided for information purposes only and should not be used or construed as an indicator of future performance. The information is not a solicitation, an offer to buy or sell, or a recommendation for any security. OptionsBuddy.com does not guarantee the accuracy or completeness of the information, or the suitability or potential value of any particular investment. Request a prospectus before investing. The term 'play' refers to placing a trade order. Returns on Investment (ROI) are based upon the option bid and the stock last. OTM ROI's do not take into account commission costs or loss of profit from options being excersized.
Copyright © 2006 BuddyBuilder Software. All rights reserved.