Intrinsic Value | Options Trading Concepts

An important concept to understand in options trading is intrinsic value. This refers to the real value that an option can be exercised for at expiration. Watch this video with @doughTraderMike to discover what intrinsic value is, how to determine if your option has intrinsic value and what this means at expiration! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/XHk5x Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. ATM and OTM options don’t have any intrinsic value because they do not have any real value.
2. OK, If an options expires OTM, that is the same as saying it is worthless, right? I would like an explanation of what exactly ITM and OTM means. Let's say I buy a 100 dollar call on a stock trading at 90 dollars. That call is OTM at that time. If it then moves to 110 at expiration, is the call option then ITM? Vice versa for a put? If this is true, then we want the options we buy to be ITM so we can profit and options we sell to be OTM for us to profit?
3. HI Mike, can you show me where I can download the slides from the archive page? thanks
4. Good content (thanks), but there's something wrong with the audio quality for the presenter in this video clip.