Income received by an investor who sells a Put Option or a Call Option. An investor collects premium income by writing a Covered Option, if he or she owns the underlying stock, or a Naked Option if he or she does not own the stock. An investor who sells options to collect premium income hopes that the underlying stock will not rise very much (in the case of a call) or fall very much (in the case of a put).
Premium Income
| Financial & Investment Dictionary: Premium Income |
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| Business Dictionary: Premium Income |
Income received by an investor who sells a Put Option or a Call Option.
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 | Operating Leverage Ratio (insurance term) |
| Burning Cost Ratio (Pure Loss Cost) (insurance term) |
| Total Operating Income (insurance term) |
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 | Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Operating Leverage Ratio (insurance term)
- Burning Cost Ratio (Pure Loss Cost) (insurance term)
- Total Operating Income (insurance term)
- premium tax
- Assessable Insurance (insurance term)
- Stop Loss Reinsurance (insurance term)
- Buy and Write Strategy (finance term)
- Covered Writer (finance term)
- Total Return (finance term)
- Generally Accepted Accounting Principles (GAAP) (insurance term)
- Deferred Charge (finance term)
- Grantor (business term)
- Butterfly Spread (finance term)
- Writer (finance term)
