Premium (options)
The price of an option, per share, times 100 per contract.
Where it is explained in full
Covered calls: the whole position, not just the premium. Selling a call against stock you own puts money in your pocket today and gives something up tomorrow. Look at both halves, or the premium will look like free money when it is not.
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Words beside it
- Credit spread (options)
Selling one option and buying another further out, collecting a net premium with a capped loss.
- Debit spread (options)
Buying one option and selling another further out, paying a net premium for a capped gain and capped loss.
- Exercise (options)
Using the right an option gives you.
- Intrinsic value (options)
The amount an option is in the money: for a call, stock price minus strike, if positive.
- Options chain
The list of every available contract for a stock, by expiration and strike.
- Premium
The price of an option, quoted per share and multiplied by 100 per contract.
Ask about Premium (options)
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