option position prior to the heavy time value decay and replace itwith another risk management position in the cash, futures or optionmarket.当你接近到期日时要注意侵蚀增长率，期权的购买者每天损失的时间价值越来越大。因此，保值者，购买期权的人，在时间价值严重衰减之前可能会想要抵消他
的long option position。
olatility of the Underlying Futures
All else remaining the same, option premiums are generally higherduring periods when the underlying futures prices are volatile. Thereis more price risk involved with market volatility and therefore agreater need for price protection. The cost of the price insuranceassociated with options is greater, and thus the premiums will behigher.
iven that an option may increase in value when futuresprices are more volatile, buyers will be willing to pay more for theoption. And, because an option is more likely to become worthwhile toexercise when prices are volatile, sellers require higher premiums.Thus, an option with
0 days to expiration might command a higherpremium in a volatile market than an option with 120 days toexpiration in a stable market.
Other Factors Affecting Time
Option premiums also are influenced by the relationship between theunderlying futures price and the option strike price. All else beingequal (such as volatility and length of time to expiration), an at-the-money option will have more time value than an out-of-the-moneyoption. For example, assume the soybean oil futures price is 2
centsper pound. A call with a 2
-cent strike price (an at-the-money call)will command a higher premium than an otherwise identical call with a26-cent strike price. Buyers, for instance, might be willing to pay 2cents for the at-the-money call, but only 1.5 cents for the out-of-the-money call. The reason is that the at-the-money call stands amuch better chance of eventually moving in the money.An at-the-money option is also likely to have more time value than anoption that is substantially in the money (referred to as a deep in-the-money option). One of the attractions of trading options is“leverage”—the ability to control relatively large resources witha relatively small investment. An option will not trade for less thanits intrinsic value, so when an option is in-the-money, buyersgenerally will have to pay over and above its intrinsic value for theoption rights. A deep in-the-money option requires a greaterinvestment and compromises the leverage associated with the option.