{"slug":"how-risky-is-options-trading","qid":"time_value_decay","label":"One AAPL call through its final month: closing premium split into intrinsic value and time value","post_title":"How Risky Is Options Trading? The Mechanics","post_url":"/blog/how-risky-is-options-trading#q-time_value_decay","columns":["date","contract_label","premium_usd","intrinsic_usd","time_value_usd"],"rows":[{"date":"2026-04-15","contract_label":"$300 strike","premium_usd":0.85,"intrinsic_usd":0,"time_value_usd":0.85},{"date":"2026-04-16","contract_label":"$300 strike","premium_usd":0.53,"intrinsic_usd":0,"time_value_usd":0.53},{"date":"2026-04-17","contract_label":"$300 strike","premium_usd":0.85,"intrinsic_usd":0,"time_value_usd":0.85},{"date":"2026-04-20","contract_label":"$300 strike","premium_usd":1.06,"intrinsic_usd":0,"time_value_usd":1.06},{"date":"2026-04-21","contract_label":"$300 strike","premium_usd":0.54,"intrinsic_usd":0,"time_value_usd":0.54},{"date":"2026-04-22","contract_label":"$300 strike","premium_usd":0.91,"intrinsic_usd":0,"time_value_usd":0.91},{"date":"2026-04-23","contract_label":"$300 strike","premium_usd":0.76,"intrinsic_usd":0,"time_value_usd":0.76},{"date":"2026-04-24","contract_label":"$300 strike","premium_usd":0.65,"intrinsic_usd":0,"time_value_usd":0.65},{"date":"2026-04-27","contract_label":"$300 strike","premium_usd":0.42,"intrinsic_usd":0,"time_value_usd":0.42},{"date":"2026-04-28","contract_label":"$300 strike","premium_usd":0.47,"intrinsic_usd":0,"time_value_usd":0.47},{"date":"2026-04-29","contract_label":"$300 strike","premium_usd":0.49,"intrinsic_usd":0,"time_value_usd":0.49},{"date":"2026-04-30","contract_label":"$300 strike","premium_usd":0.73,"intrinsic_usd":0,"time_value_usd":0.73},{"date":"2026-05-01","contract_label":"$300 strike","premium_usd":0.48,"intrinsic_usd":0,"time_value_usd":0.48},{"date":"2026-05-04","contract_label":"$300 strike","premium_usd":0.17,"intrinsic_usd":0,"time_value_usd":0.17},{"date":"2026-05-05","contract_label":"$300 strike","premium_usd":0.49,"intrinsic_usd":0,"time_value_usd":0.49},{"date":"2026-05-06","contract_label":"$300 strike","premium_usd":0.73,"intrinsic_usd":0,"time_value_usd":0.73},{"date":"2026-05-07","contract_label":"$300 strike","premium_usd":0.6,"intrinsic_usd":0,"time_value_usd":0.6},{"date":"2026-05-08","contract_label":"$300 strike","premium_usd":1.5,"intrinsic_usd":0,"time_value_usd":1.5},{"date":"2026-05-11","contract_label":"$300 strike","premium_usd":0.91,"intrinsic_usd":0,"time_value_usd":0.91},{"date":"2026-05-12","contract_label":"$300 strike","premium_usd":1.05,"intrinsic_usd":0,"time_value_usd":1.05},{"date":"2026-05-13","contract_label":"$300 strike","premium_usd":2.18,"intrinsic_usd":0,"time_value_usd":2.18},{"date":"2026-05-14","contract_label":"$300 strike","premium_usd":1.17,"intrinsic_usd":0,"time_value_usd":1.17},{"date":"2026-05-15","contract_label":"$300 strike","premium_usd":0.45,"intrinsic_usd":0.25,"time_value_usd":0.2}],"shape":"series","sql":"WITH busiest AS (\n    SELECT ticker\n    FROM global_markets.options_trades\n    WHERE ticker LIKE 'O:AAPL260515C%'\n      AND toDate(sip_timestamp) BETWEEN toDate('2026-04-15') AND toDate('2026-05-15')\n    GROUP BY ticker\n    ORDER BY count() DESC\n    LIMIT 1\n),\ncontract AS (\n    SELECT toFloat64OrZero(substring(ticker, 14, 8)) / 1000 AS strike_usd,\n           concat('$', toString(round(toFloat64OrZero(substring(ticker, 14, 8)) / 1000, 2)), ' strike') AS contract_label\n    FROM busiest\n),\npremium AS (\n    SELECT toDate(sip_timestamp) AS date,\n           round(argMax(toFloat64(price), sip_timestamp), 2) AS premium_usd\n    FROM global_markets.options_trades\n    WHERE ticker IN (SELECT ticker FROM busiest)\n      AND toDate(sip_timestamp) BETWEEN toDate('2026-04-15') AND toDate('2026-05-15')\n    GROUP BY date\n),\nspot AS (\n    SELECT toDate(toTimeZone(window_start, 'America/New_York')) AS date,\n           argMax(toFloat64(close), window_start) AS stock_close\n    FROM global_markets.delayed_stocks_minute_aggs\n    WHERE ticker = 'AAPL'\n      AND toDate(toTimeZone(window_start, 'America/New_York')) BETWEEN toDate('2026-04-15') AND toDate('2026-05-15')\n      AND (toHour(toTimeZone(window_start, 'America/New_York')) * 60\n           + toMinute(toTimeZone(window_start, 'America/New_York'))) BETWEEN 570 AND 959\n    GROUP BY date\n)\nSELECT p.date AS date,\n       c.contract_label AS contract_label,\n       p.premium_usd AS premium_usd,\n       round(greatest(s.stock_close - c.strike_usd, 0), 2) AS intrinsic_usd,\n       round(p.premium_usd - greatest(s.stock_close - c.strike_usd, 0), 2) AS time_value_usd\nFROM premium AS p\nINNER JOIN spot AS s ON p.date = s.date\nCROSS JOIN contract AS c\nORDER BY date","computed_at":"2026-08-01T09:06:08.435223+00:00","elapsed":0.00481673}