Wealthy Habitat

Words explained

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.

A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.

Words beside it

Ask about Premium (options)

A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.