This video breaks down the two parts that make up the price of an option; intrinsic value and extrinsic value. Also, go over what at the money means and why its important. Clear up some abbreviation mistakes that I have seen other make. 0:00 Intro 0:52 Abbreviation for Terms (IMPORTANT) 1:49 Intrinsic Value 6:05 Extrinsic Value 9:10 At The Money Strike 10:23 Int & Ext Value Combined 11:08 Broker Examples FOLLOW ME Trading View https://www.tradingview.com/u/Options_Trading/ Twitter https://twitter.com/Neal_Orsburn Trading Journal: https://www.etsy.com/OptionsTrading/listing/1115164633/trading-journal-for-stock-and-options?utm_source=Copy&utm_medium=ListingManager&utm_campaign=Share&utm_term=so.lmsm&share_time=1636164641938 Some resources I commonly refer to: https://www.tradingview.com/ https://www.investopedia.com/ https://www.barchart.com/stocks/performance/gap/gap-up https://finviz.com/ DISCLAIMER: The content discussed in this video, and the videos on this channel, are solely my opinion and should never be used as financial advice. This channel is for educational and entertainment purposes only. Make sure to consult with your financial professional before making money decisions. Thank you for watching and good luck investing!