The Role of Premium
The premium is the price you pay to buy the option.
Premium is influenced by:
Underlying price
Strike price
Time to expiry (more time = higher premium)
Volatility (higher volatility = higher premium)
Interest rates
Market demand
The buyer’s maximum loss is limited to the premium paid, but the seller’s risk can be much higher—sometimes unlimited.
The premium is the price you pay to buy the option.
Premium is influenced by:
Underlying price
Strike price
Time to expiry (more time = higher premium)
Volatility (higher volatility = higher premium)
Interest rates
Market demand
The buyer’s maximum loss is limited to the premium paid, but the seller’s risk can be much higher—sometimes unlimited.
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.