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Why is my premium different than yours?
Quote from Admin on 27 November 2023, 2:41 pmWe seem to get this question on a regular basis in our email, so we thought we'd answer it here.
The simple explanation is that the stock market is volatile. It moves from moment to moment. Wait a bit and the stock can go from high to a low or low to high. The premiums that you receive will greatly depend on the direction that the stock is moving in that moment.
PUT premiums tend to be higher when the stock is moving down.
CALL premiums tend to increase when the stock is increasing.
We seem to get this question on a regular basis in our email, so we thought we'd answer it here.
The simple explanation is that the stock market is volatile. It moves from moment to moment. Wait a bit and the stock can go from high to a low or low to high. The premiums that you receive will greatly depend on the direction that the stock is moving in that moment.
PUT premiums tend to be higher when the stock is moving down.
CALL premiums tend to increase when the stock is increasing.