Phrases with «option premium»

Option premium refers to the amount of money a buyer pays to the seller for the right to buy or sell an asset, such as stocks or commodities, at a predetermined price in the future. It is like a fee or price tag attached to an option contract. The premium is influenced by various factors, including the asset's price, time remaining until expiration, volatility, and demand for the option. Full definition

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Sentences with «option premium»

  • In short, it's a high - quality company, it's growing its dividend, it's reasonably - priced, and it pays HUGE income by way of options premiums. (tradesoftheday.com)
  • Many investors find they can generate 6 % to 10 % per year in option premium income by selling out of the money calls on their large cap dividend paying blue chip stocks. (borntosell.com)
  • Covered call option cash flow for any portfolio will vary depending on actual portfolio positions, option premiums received, individual security price volatility, and general stock market volatility. (capitalwealthplanning.com)
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