The Proximity Effect

Option profit/loss is always determined by time (theta), volatility (vega), and direction (delta), but another way to think about delta is by way of the proximity effect. While the relationship between the stock price and strike price clearly impacts the <a href="https://ontt.tv/2UAmJWb" target="_blank">intrinsic value</a> of the strategy, it also impacts the <a href="https://youtu.be/Dz7W8iPmpm4" target="_blank">extrinsic value </a>of the strategy, as we see today.<a href="https://youtube.com/playlist?list=PLPVve34yolHY2tN8U9QySzujt1iP_YHT0" target="_blank">Have you seen our BRAND NEW CRASH COURSE on Rolling?</a>