Today, as part of our beginner series, we goand talk about the basic components of an option’s price. For our traders that are , this will be a very important piece of knowledge. Thankfully, we quickly learn that the puzzle that is an option’s price has only two pieces: intrinsic value and extrinsic value. The stock price influences the intrinsic value, while all other non-price factors . When we dive into the tastyworks platform, we see exactly how time and volatility (add link) factor into an option’s extrinsic value.