South Florida Arbitration & Litigation Lawyer Blog
Put and Call Option Premium Income – South Florida Option Abuse, Excessive Activity, Breach of Fiduciary Duty, Negligent Supervision FINRA Arbitration and Litigation Attorney:
Option premium income is income received by an investor who sells a put option or call option. An investor collects premium income by writing a covered option, if the investor 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).
Please keep in mind that the above information is being provided for educational purposes only. Thus, it is not designed to be complete in all material respects. It should not be relied upon as legal or investment advice. If the reader has any questions relative to this post, you should contact a qualified professional.
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