Intrinsic value is the measure of what an option is worth if it is in-the-money (ITM) at expiration. Each option contract is the theoretical equivalent of 100 shares of stock, which means the intrinsic value is simply the difference between the stock price and the ITM strike price, multiplied by 100.

0:00 Introduction
1:00 Option Premium: Calls
4:13 Option Premium: Puts
5:33 Takeaway: Intrinsic Value

Learn more from Mike about what intrinsic value is, how to determine if your option has intrinsic value, and how it works.

Click the link below to learn more about Intrinsic Value:
https://www.tastytrade.com/shows/wher...

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