@Tiger_Academy:In the previous session, we covered the six elements of an option contract, namely: underlying assets, option type, expiration date, strike price, premium, and contract size.We usually say that the value of a stock ultimately depends on the profitability of the company. What then does the value of the option depend on?In this session, we will talk about factors that affect the value of an option.Let's take a look at Tesla's option chain.At the moment, Tesla's share price stands at USD 1,160. We can see that even when call options have the same expiration date, the premiums of the contracts vary greatly depending on the different strike prices. What is the reason behind this? If we scroll to the left, we can see this column: intrinsic value and time value. What are the characteristics of th

@Tiger_Academy:In the last article, we learned the basic concept and purpose of options.Next, what elements does an option contract contain?The first elementis the underlying asset. As we already know, an option is a contract. The underlying asset is the asset the contract is based on.If you buy individual stock options of Tesla or Apple, the stocks of Tesla and Apple are the underlying assets of the options.The trend of options is closely related to the performance of the underlying stocks. In addition to stocks, underlying assets can also include indexes, ETFs, futures, etc.The second element isthe option type, call or put, which was discussed in the last article.The third element is the expiration date, which is also one of the biggest differences between stocks and options. You can hold onto stocks f