Classify common option quote clues by intrinsic value, extrinsic value, and moneyness.
sort-buckets score-chips common-trap-callout Sort each clue into the bucket it best represents: intrinsic value, extrinsic value, or moneyness. Intrinsic value Extrinsic value Moneyness A 45 call while the stock trades at 50 has at least $5 of immediate exercise value. A 55 call while the stock trades at 50 still costs $1.10 because time and volatility remain. A put strike sits below the current stock price and is therefore out of the money. An option price falls after earnings even though the strike relationship barely changes. A 60 put while the stock trades at 54 has $6 of exercise value…
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