The premium is the price of an option. Each call and each put has its own premium.
Lesson 5
What the premium is
The premium is the price of an option. The buyer pays it and the seller receives it. For a call alone, strike price plus premium gives break-even at expiration, before fees.
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Learn how to turn a premium into money
Read a sample call’s bid and ask, then count them for one contract. Each of the four checkpoints ends with a two-answer question. Nothing places a trade.
CHECKPOINT 1 OF 4
Choose SOFI
0 / 4 checkpoints earned
When the chart loads, follow its highlighted control to earn your first checkpoint.
- Choose SOFI
- Read what the seller receives, upcoming
- Read the buyer's break-even, upcoming
- Read a put's premium, upcoming
Loading the practice chart.
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