Question

Will an option with earlier or later expiration have more time value?

Answer 1

Options with later expiration dates generally have more time value.

Step-by-step explanation:

An option's time value refers to the amount of time remaining until the option's expiration date. Generally, options with later expiration dates will have more time value because they provide the holder with a longer period to benefit from favorable price movements in the underlying asset.

For example, if you have an option with an expiration date 6 months from now, you have more time for the price of the underlying asset to increase. This additional time can increase the potential for the option to be profitable and, therefore, increase its time value.