How much of this option's premium is time value versus intrinsic value?
Enter the Option's Numbers
Your Result
Fill in the fields on the left and click Split the Premium to see how much you're paying for time versus exercise value.
How this is calculated
Intrinsic value is what an option would be worth if you exercised it right now. For a call it's the stock price minus the strike, floored at zero. For a put it's the strike minus the stock price, floored at zero.
Extrinsic value is everything else you're paying for, mainly time until expiration and implied volatility. It equals the premium minus intrinsic value.
Extrinsic value decays toward zero as expiration approaches. Use the theta decay calculator to estimate roughly how much of that decay happens per day at current conditions.
Out-of-the-money options have zero intrinsic value by definition. Their entire premium is extrinsic (time) value.
This is a snapshot based on the stock price and premium you entered. Both change constantly during market hours, so re-run this with fresh numbers before relying on it.
Risk & liability disclaimer: This calculator produces a mathematical split of the premium you entered into intrinsic and extrinsic value based on a snapshot stock price. It is not financial advice, does not reflect live market pricing, and does not predict how the option's value will change. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation, always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
Know What You're Actually Paying For
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