Option Moneyness Basics

Arguably the most important concept a new option trader has to understand early on is the idea of moneyness. Essentially the <a href="https://ontt.tv/2rOUrZN">moneyness of an option</a> controls the potential of both the intrinsic value and the extrinsic value in the option’s price. And while the short side of the option contract wants both intrinsic and extrinsic to be as low as possible, the long side of the contract wants both intrinsic and extrinsic to be as high as possible.<a href="https://youtube.com/playlist?list=PLPVve34yolHY2tN8U9QySzujt1iP_YHT0">Have you seen our BRAND NEW CRASH COURSE on Rolling</a>?