What Is Option Premium and How Do We Value It?

The premium of an option is often used interchangeably with price.  While that is almost true, it’s not entirely true.  The price of an option includes both intrinsic and extrinsic value.  The premium of an option refers to just the extrinsic value.

Watch the video below as we analyze the premium associated with our position in NXPIWealth Strength IndexNXPI is Moderately Up and trending Up.