Options Basics
Premium
The price of an option — what you pay to buy it, or collect to sell it.
Definition
The premium is the market price of an option — the amount the buyer pays and the seller (writer) receives. It's quoted per unit and multiplied by the lot size to get the rupee value of one contract.
What it's made of
Premium = intrinsic value + time value.
- Intrinsic value — the in-the-money portion.
- Time value — the rest: time, volatility and uncertainty.
What moves it
- Underlying price (delta), time decay (theta) and implied volatility (vega).
- Higher IV and more time to expiry both raise the premium.
Example
A NIFTY 22,500 call quoted at 150 means a buyer pays 150 per unit; with a lot size of 75 (illustrative), one contract costs 150 × 75 = ₹11,250.
See live premiums across strikes
TradePulse's live option chain shows premiums, intrinsic/time value and Greeks for every strike.