Premium, Strike and Expiry
The parts of an options trade.
1 min readGlossary
- Premium: the price paid for an option. In flow, the total premium is the money spent.
- Strike: the price at which the option lets you buy or sell.
- Expiry: the last day the option can be used.
- In or out of the money: whether the stock is past the strike, so the option has built-in value.
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