Uncovered Options Trading System

Options Autotrading
143 signals were traded since 2016-20
only 6 red

Options Glossary - Most Used Terms

Premium

The price of an option contract, determined in the competitive marketplace, which the buyer of the option pays to the option writer for the rights conveyed by the option contract. Often this word is used to mean the same as time value.

See Also:

Call Premium: The amount a call option costs.

Option Premium: This is the price of an option.

Short Premium: Expectation that a move of the underlying in either direction will result in a theoretical decrease of the value of an option.

Time Value Premium: The amount by which an option's total premium exceeds its intrinsic value.

Time Premium: The additional value of an option due to the volatility of the market and the time remaining until expiration.

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