Intrinsic ValueIntrinsic Value
Calculate the intrinsic value of any call or put.Kisi bhi call ya put ki intrinsic value calculate karo.
📖 LessonLesson
Intrinsic value is the part of the premium the option would be worth if it expired right now.
Call intrinsic = max(0, NIFTY − strike)
Put intrinsic = max(0, strike − NIFTY)
- ITM options have positive intrinsic value.
- ATM and OTM options have zero intrinsic value.
- Intrinsic value can never be negative.
Try different strikes in the calculator below to see intrinsic and time value separately.
Intrinsic value premium ka woh hissa hai jo option abhi expire ho jaaye to bachega.
Call intrinsic = max(0, NIFTY − strike)
Put intrinsic = max(0, strike − NIFTY)
- ITM options ki intrinsic value positive hoti hai.
- ATM aur OTM options ki intrinsic value zero hoti hai.
- Intrinsic value kabhi negative nahi hoti.
Neeche calculator me alag strikes try karo aur intrinsic aur time value alag-alag dekho.
🛠 Practise itPractice karo
⚠️ Common mistakesCommon galtiyan
- Calculating negative intrinsic value for OTM options.OTM options ki intrinsic value negative nikalna.
- Using the wrong formula for puts.Puts ke liye galat formula use karna.
- Forgetting that the premium also contains time value.Bhoolna ki premium me time value bhi hai.
✅ Quick quizQuick quiz
Score 2 out of 3 or more and the lesson is marked complete automatically.3 me se 2 ya zyada score karo, lesson apne aap complete mark ho jayega.
📝 SummarySummary
- Call: max(0, NIFTY − strike).Call: max(0, NIFTY − strike).
- Put: max(0, strike − NIFTY).Put: max(0, strike − NIFTY).
- Never negative; zero for ATM/OTM.Kabhi negative nahi; ATM/OTM ke liye zero.
📚 Sources & market rules usedSources aur market rules
Last reviewed: 2 November 2026 · Version 1.0 · Prepared by the SmaartAlgos Academy team.Last reviewed: 2 November 2026 · Version 1.0 · SmaartAlgos Academy team dwara taiyaar.
Education only. SmaartAlgos is not a SEBI-registered investment adviser or research analyst. Nothing in this lesson is a recommendation to buy or sell any security. Options trading involves substantial risk of loss. Examples are hypothetical or simulated; market rules are shown with their effective dates — always confirm the latest official circulars.
Sirf education. SmaartAlgos SEBI-registered investment adviser ya research analyst nahi hai. Is lesson me kuch bhi kisi security ko buy ya sell karne ki salah nahi hai. Options trading me bada loss ho sakta hai. Examples hypothetical ya simulated hain; market rules effective date ke saath diye gaye hain — hamesha latest official circular confirm karo.