Understanding Options Pricing | Fidelity Investments

Before trading options, please read Characteristics and Risks of Standardized Options here:https://www.theocc.com/Company-Inform....

Check out our video to learn what an options premium is, and 3 key factors that can affect that premium such as underlying price, expiration and implied volatility. Learn about options premium and 3 key factors that can affect it -underlying price, expiration, and implied volatility.

00:00 Welcome
00:38 What is an options premium
01:22 Intrinsic value and premium
03:10 Time to expiration and premium
03:59 Implied volatility and premium
05:23 That’s a wrap

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Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Supporting documentation for any claims, if applicable, will be furnished upon request.

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