Option Value Calculator
Split any option premium into intrinsic and extrinsic (time) value, and see its moneyness. Enter spot, strike, premium and type.
Quick answer: Intrinsic value is how deep an option is in-the-money; extrinsic (time) value is the rest of the premium. This tool splits any premium into the two and tells you whether the option is ITM, ATM or OTM.
How to use it
Enter the spot, strike, the option's current premium and whether it is a call or put. The tool computes intrinsic value (the in-the-money amount, floored at zero), extrinsic/time value (premium minus intrinsic) and the moneyness. At expiry, only intrinsic value remains.
Limitations of the Option Value Calculator
What this tool does not model — read before relying on any number it shows:
- It splits the premium you type in — it does not price the option, so it cannot tell you whether that premium is fair, cheap or expensive.
- Intrinsic value is arithmetic (spot vs strike); extrinsic value is simply premium minus intrinsic, and reflects whatever demand, volatility and spread are baked into the price you entered.
- It uses spot as the reference; the exchange settles in-the-money options at expiry against the final settlement price (last-30-minute average), which can differ from the last spot.
- It excludes STT, brokerage and statutory charges, so the time value shown is gross, not the net you would capture.
Frequently asked questions
What is intrinsic and extrinsic value?
Intrinsic value is how far an option is in-the-money (spot minus strike for a call, strike minus spot for a put, floored at zero). Extrinsic (time) value is the rest of the premium — what you pay for time and volatility.
How much of my premium is time value?
Subtract intrinsic value from the premium. This tool does it for you. Out-of-the-money options are entirely time value; deep in-the-money options are mostly intrinsic value.
What happens to time value at expiry?
It goes to zero. At expiry an option is worth only its intrinsic value, which is why out-of-the-money options expire worthless.
What does moneyness mean?
Moneyness describes an option's position relative to its strike: in-the-money (has intrinsic value), at-the-money (spot near strike) or out-of-the-money (no intrinsic value).
Runs entirely in your browser — no data leaves your device. Illustrative and educational only; exchange rules and charges apply in practice.