{"id":1679,"date":"2010-02-09T06:00:19","date_gmt":"2010-02-09T10:00:19","guid":{"rendered":"http:\/\/club.ino.com:80\/trading\/?p=1679"},"modified":"2010-02-19T15:58:05","modified_gmt":"2010-02-19T19:58:05","slug":"traders-toolbox-learning-options-part-1-of-4-revisited","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/","title":{"rendered":"Traders Toolbox: Learning Options Part 1 of 4 Revisited..."},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" style=\"float: left;\" src=\"\/img\/sites\/ino\/email\/2306.jpg\" alt=\"Trader's Toolbox\" width=\"105\" height=\"113\" \/><\/p>\n<p>At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.<\/p>\n<p>The Trader's Toolbox posts are just another free resource from <strong>MarketClub<\/strong>.<\/p>\n<p>---<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" style=\"float: right;\" src=\"\/img\/sites\/ino\/email\/1281.jpg\" alt=\"Options Part 1 of 4\" width=\"287\" height=\"199\" \/><\/p>\n<p>\"There are four components to an options price: underlying contract price, intrinsic value ( determined by strike price), time value (time remaining until expiration) and volatility. (A fifth element, interest rates, also can affect option prices, but for our purposes is unimportant.)Intrinsic value refers to the amount an option is in-the-money. With Eurodollar futures at 95.55, a 95.00 call has an intrinsic value of .55. The more an option is in the money, the greater its intrinsic value. At-the-money and out-of-the-money options have no intrinsic value.<\/p>\n<p>Options are referred to as \u201cwasting\u201d assets because their value decreases over time until it reaches zero at expiration, a process called time decay. Time value refers to the part of an option\u2019s price that reflects the time left until expiration. The more distance an option\u2019s expiration date, the greater the premium because of the uncertainty of projecting prices further into the future...\"<\/p>\n<p style=\"text-align: center;\"><a title=\"Learning Options 1 of 4\" href=\"http:\/\/club.ino.com:80\/trading\/2008\/11\/traders-toolbox-learning-options-part-2-of-5\/\" target=\"_self\">Revisit the Trader's Toolbox Post: \"Learning Options Part 1 of 4\" here.<\/a><\/p>\n<p style=\"text-align: center;\">\n<p style=\"text-align: center;\">\n<p style=\"text-align: center;\">\n<p style=\"text-align: center;\">\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers. The Trader's Toolbox posts are just another free resource from MarketClub. --- [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2506,2508,493,2505,2507],"class_list":["post-1679","post","type-post","status-publish","format-standard","hentry","category-trading-tips","tag-first-part-of-learning-options","tag-intresic-value","tag-intrinsic-value","tag-learning-options-part-1-of-4","tag-time-value-premium"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Traders Toolbox: Learning Options Part 1 of 4 Revisited... - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Toolbox: Learning Options Part 1 of 4 Revisited... - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers. The Trader&#039;s Toolbox posts are just another free resource from MarketClub. --- [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader&#039;s Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2010-02-09T10:00:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2010-02-19T19:58:05+00:00\" \/>\n<meta name=\"author\" content=\"lindsay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"lindsay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/\"},\"author\":{\"name\":\"lindsay\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/9083a07f1dc79480b7cc9c80e829259d\"},\"headline\":\"Traders Toolbox: Learning Options Part 1 of 4 Revisited...\",\"datePublished\":\"2010-02-09T10:00:19+00:00\",\"dateModified\":\"2010-02-19T19:58:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2010\/02\/traders-toolbox-learning-options-part-1-of-4-revisited\/\"},\"wordCount\":220,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"keywords\":[\"first part of learning options\",\"intresic value\",\"intrinsic value\",\"learning options part 1 of 4\",\"time value premium\"],\"articleSection\":[\"MarketClub Techniques, Tips &amp; 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