What is Option Premium?
It’s the cost of an option contract.
When you buy an option, you pay the premium upfront.
Example: If you buy a Call Option of Reliance ₹2800 at ₹50 premium — you pay ₹50 × lot size.
Who Receives It?
The option seller (writer) receives the premium income immediately when they sell (write) the option.
It’s the cost of an option contract.
When you buy an option, you pay the premium upfront.
Example: If you buy a Call Option of Reliance ₹2800 at ₹50 premium — you pay ₹50 × lot size.
Who Receives It?
The option seller (writer) receives the premium income immediately when they sell (write) the option.
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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.
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.