If the option expires worthless, the option premium is extra money in your pocket.
Putting yourself in a situation where you can do so while at the same time being able to take advantage of option premium decay is an interesting concept.
Using options allows one to enjoy a greater level of volatility as the strikes being away from the market turn all option premium over to the time value.
Why both Sony and Microsoft don't offer the next generation movie formats as a premium option for their players is beyond us.
We have to say that offering additional programming above and beyond what is currently free is a pretty good strategy, but the other one we'd like to see is a premium option to view content commercial free -- no word on if any of the paid content will still have commercials.
ENGADGET: Hulu's subscription service might run $5 for access to select shows
The second option is the AurumXchange Premium Mastercard issued through North Carolina-based Four Oaks Bank which comes with instant funds availability.
Few companies will be offering HSAs as the only option, and the premium savings for employees likely won't be as significant as the savings for self-employed individuals.
In the old SoundCloud (which, by the way, is still available for an undetermined time as a toggle), Spotlight was a paid option included in the premium subscriptions.
ENGADGET: Editorial: the new SoundCloud is optimized for listeners, not uploaders
Yet in an environment where option implied volatility is literally trading at a premium, the worth of the option has increased by more than six-fold in the space of three weeks.
If you otherwise might make money on a good idea, the time premium on an option will eat you alive.
As with a short call, when you go short a put, you collect the premium on the option as a credit in your account.
Instead they are bragging about a 290-page Ryan opposition research paper from the left-wing super PAC American Bridge that focuses on the congressman's plan to reform Medicare to offer a "premium support" option a proposal he crafted with Oregon's Democratic Sen.
It so happens that markets already provide this information, in the form of the premium of a call option on the company's share-price.
Connecting flights are almost always less expensive than nonstop flights, but they are not always the best option for travellers who place a premium on time.
But Verizon is considering another option: delivering faster data speeds at premium prices.
WSJ: Verizon Considers Charging for Wireless Data Based on Speed
This change could give customers the option of just buying one or two premium sports channels, rather than having to get them as part of a bundle of channels, as is currently the case with Sky and Virgin Media.
Whereas if we were really close to expiration, there is a greater chance of all of the premium being lost on the option that is opposite of the stock price movement as the rate of time decay will increase exponentially.
The premium for a one-month option counts up to 10%, so at least you're covered for the first downdraft.
Given the intense interest this year from banks wanting to buy card companies, a potential sale of the unit for a premium could also have been an option.
Often during extended trading ranges, implied option volatility declines and the amount of time premium built into the price of the options of the security in question becomes very low.
Or you could just as quickly lose the whole wad (the premium) that you paid for the option.
Your premium income for writing this risky put option takes the form of an enhanced yield on the bank note.
But you are also getting a call option on the possibility that Viacom will sell a lot of premium services to its cable subscribers, using fiber-optic cable it has already laid in the ground.
In the case of the oil company, for instance, the cost of land corresponds to the premium (or down-payment) on a call option, and the extra investment needed to start production to its strike price (at which the option is exercised).
Unlike with a futures investment, which is based on the current value of gold, the downside to options is that the investor must pay a premium to the underlying value of the gold to own the option.
The more volatile the share, the higher this premium since the share is more likely to rise above the option's strike price.
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