Option time value
The premium above intrinsic value, paid for the movement that is still possible before expiry.
How to read the number
It buys possibility rather than fact, and shrinks as expiry approaches, fastest of all for options near the strike.
When the metric lies
This is the part that disappears when the move is right but slow: the direction was correct, the time ran out, and nothing of the option is left.
Also known as: extrinsic value