Mastering the time value in options trading
Webinar
In the third webinar of the options trading series between, Euronext will dive into the time value of options and explore the calendar spread strategy. How does time decay impact the price of options? How can investors use calendar spreads to capitalize on different time horizons?
With
Michael Barclay
Senior Product & Sales Manager
Euronext
What are the six factors that affect an option premium? And what are the components of an option premium?
Time value: a key component of the premium
- Time value in numbers
- Important components of time value
Time value is linked to an option maturity
- Options on CAC 40 Index, FTSE MIB Index and AEX Index: what are the available maturities?
- Longer expiries leading to higher premiums
- Extrinsic value increases with the life of the option
Combining options with different maturities to enhance strategies
- What is a calendar spread?
- Why use calendar spreads?
- Buying a call spread calendar
- Selling a put calendar spread