Intrinsic Value and Extrinsic are fundamental to the options market, and they are equally as foundational to every active trader. Understanding when options have only extrinsic value or both intrinsic value and extrinsic value is something that routinely shows up in all corners of the market. Additionally, rolling positions can certainly alter the extrinsic value of the position, or both the intrinsic and extrinsic value of the position. To illustrate all of these relationships, we look at a few different options in TWTR.
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