Tools
Option pricing calculator
Enter strike, spot price, and premium to derive the time value of an option immediately.
Calculator
Calculate the time value of an option
This calculator splits option premium into intrinsic value and time value. The core logic is: time value = option price - intrinsic value.
For calls use max(Spot - Strike, 0), for puts max(Strike - Spot, 0).
Result
Intrinsic value and time value
Moneyness
ITM
Intrinsic value per share
3.00
Time value per share
0.20
Premium per contract
320.00
Time value per contract
20.00
Intrinsic value formula
Call: max(51.00 - 48.00, 0) = 3.00
Time value formula
Time value = 3.20 - 3.00 = 0.20
Time value is the part of the premium that is not explained by intrinsic value.