Option Premium(LTP)
Option Premium is the price a buyer pays the seller for an option — made up of intrinsic value plus time value.
Premium = Intrinsic Value + Time ValueWhat Option Premium Means
The option premium is the market price of an option — what a buyer pays and a seller receives, quoted per share and traded as the last traded price (LTP). It is composed of two parts: intrinsic value (the in-the-money amount) plus time value (the extra for time and volatility remaining). For out-of-the-money options, the entire premium is time value.
Premium rises with more time to expiry, higher implied volatility, and deeper moneyness; it falls as time decays and as volatility contracts.
How Premium Scales with Lot Size
On NSE, options trade in lots, so the rupee outlay is the premium multiplied by the lot size. A Nifty premium of ₹120 with a lot size of 75 costs ₹120 × 75 = ₹9,000 to buy one lot. A BankNifty premium of ₹200 with a lot size of 35 costs ₹7,000 per lot. Sellers receive this amount upfront but must post SPAN margin.
Premium in the Indian Market
Weekly Thursday expiries make Nifty and BankNifty premiums highly time-sensitive, decaying fast into expiry. Around events, premiums inflate with India VIX and then crush afterward. Quintal Mind streams live premiums (LTP) across the full option chain so you can see exactly how intrinsic and time value are moving in real time.
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