The amount by which an options premium exceeds its intrinsic value. also called time value.

Also known as "Time Value", this is the amount that the value of an option exceeds its intrinsic value and is a parameter in the Matrix. It reflects the statistical possibility that an option will reach expiration with intrinsic value rather than finishing at zero dollars. If an option is out-of-the-money then its entire value consists of time premium.

The difference between an option's price and its intrinsic value, reflecting what investors are willing to pay to speculate on future price changes.

The additional value of an option due to the volatility of the market and the time remaining until expiration.

same as time value

Also called time value, the amount by which the option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, and the riskless return.

time spread time value