Understanding Options Pricing | Fidelity Investments

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