Factors That Affect Option Premium
(A) Underlying Price Movement
Bigger moves → bigger premium.
(B) Time Value
Longer time to expiry → higher premium.
(C) Volatility (IV)
Higher IV = expensive options
Lower IV = cheaper options
(D) Demand & Supply
High activity in a strike increases premium.
(E) Market Events
Events like:
RBI Policy
Budget
Elections
Earnings
Cause volatility spikes.
(A) Underlying Price Movement
Bigger moves → bigger premium.
(B) Time Value
Longer time to expiry → higher premium.
(C) Volatility (IV)
Higher IV = expensive options
Lower IV = cheaper options
(D) Demand & Supply
High activity in a strike increases premium.
(E) Market Events
Events like:
RBI Policy
Budget
Elections
Earnings
Cause volatility spikes.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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.