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Definition of 'Time Value'
The portion of the option premium that is attributable to the amount of time remaining until the expiration of the option contract.
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Investopedia explains 'Time Value'
Basically, time value is the value the option has in addition to its intrinsic value.
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Move beyond simply buying calls and puts, and learn how to turn time-value decay into potential profits.
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Alert options traders can follow this strategy to improve their chances of success.
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