2. Option Premium Trading
In derivatives, premium trading refers to trading options contracts, where:
The premium = price paid to buy an option
You either buy options (pay premium) or sell options (collect premium)
Example:
Buy Call → pay premium → profit if price rises
Sell Call/Put → earn premium → profit if price stays within range
This is widely used in strategies like:
Covered calls
Iron condors
Straddles
👉 Important: Selling premium can look easy but carries significant risk if the market moves sharply.
In derivatives, premium trading refers to trading options contracts, where:
The premium = price paid to buy an option
You either buy options (pay premium) or sell options (collect premium)
Example:
Buy Call → pay premium → profit if price rises
Sell Call/Put → earn premium → profit if price stays within range
This is widely used in strategies like:
Covered calls
Iron condors
Straddles
👉 Important: Selling premium can look easy but carries significant risk if the market moves sharply.
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.