Time Value Only
When an option is at the money or out of the money, its entire premium is time value. This means it has no current intrinsic value.
The price of the option is purely a reflection of the time left until expiration and the volatility of the asset. If the expiration arrives and it is still out of the money, the entire value disappears.
It is the purest form of a speculative option.
Glossary
Account Asset Value
Valuation ⎊ The account asset value represents the aggregated market worth of all holdings within a trading account, encompassing cash, cryptocurrencies, and derivative positions.
Collateral Value Shortfall
Collateral ⎊ The core concept underpinning Collateral Value Shortfall revolves around the adequacy of pledged assets securing obligations within cryptocurrency derivatives, options, and broader financial instruments.