Option PremiumOption Premium
Understand what the premium is, how much one lot costs, and who pays whom.Premium kya hai, ek lot kitne ka padta hai, aur kaun kise pay karta hai, samjho.
📖 LessonLesson
The premium is the price of the option, quoted per unit. The total cost of one lot is:
Premium × Lot size = Total premium
The buyer pays this amount upfront; the seller receives it (and keeps margin with the broker).
Premium is made of two parts — intrinsic value and time value — which you will study in lessons 2.8 and 2.9. Premiums change every second with NIFTY's level, time left to expiry and expected volatility.
When you sell an option you pay STT of 0.15% of the premium, plus brokerage and exchange charges.
Premium option ki price hai, per unit quote hoti hai. Ek lot ki total cost:
Premium × Lot size = Total premium
Buyer ye amount upfront deta hai; seller ko milta hai (aur woh broker ke paas margin rakhta hai).
Premium ke do hisse hain — intrinsic value aur time value — jo lesson 2.8 aur 2.9 me padhenge. NIFTY level, expiry tak bacha time aur expected volatility ke saath premium har second badalta hai.
Option bechne par STT 0.15% of the premium lagta hai, saath me brokerage aur exchange charges.
🛠 Practise itPractice karo
⚠️ Common mistakesCommon galtiyan
- Looking at the per-unit premium and forgetting to multiply by the lot size.Per-unit premium dekh kar lot size se multiply karna bhool jaana.
- Ignoring charges when calculating the real cost.Asli cost nikalte waqt charges ignore karna.
- Thinking a seller “gets free money” — the seller takes on the risk.Ye sochna ki seller ko “free paisa” milta hai — seller risk leta hai.
✅ Quick quizQuick quiz
Score 2 out of 3 or more and the lesson is marked complete automatically.3 me se 2 ya zyada score karo, lesson apne aap complete mark ho jayega.
📝 SummarySummary
- Premium = option price per unit.Premium = option ki per-unit price.
- Total = premium × lot size (65 for NIFTY).Total = premium × lot size (NIFTY ke liye 65).
- Buyer pays, seller receives and keeps margin.Buyer deta hai, seller leta hai aur margin rakhta hai.
📚 Sources & market rules usedSources aur market rules
- NIFTY lot size: 65 — from the January 2026 contract series. NSE circular FAOP70616 (3 Oct 2025)
- STT on option sale: 0.15% of the premium — STT on the sale of an option, from 1 April 2026. Union Budget 2026-27 / Income Tax Department
- NSE — lot size circular FAOP70616
Last reviewed: 2 November 2026 · Version 1.0 · Prepared by the SmaartAlgos Academy team.Last reviewed: 2 November 2026 · Version 1.0 · SmaartAlgos Academy team dwara taiyaar.
Education only. SmaartAlgos is not a SEBI-registered investment adviser or research analyst. Nothing in this lesson is a recommendation to buy or sell any security. Options trading involves substantial risk of loss. Examples are hypothetical or simulated; market rules are shown with their effective dates — always confirm the latest official circulars.
Sirf education. SmaartAlgos SEBI-registered investment adviser ya research analyst nahi hai. Is lesson me kuch bhi kisi security ko buy ya sell karne ki salah nahi hai. Options trading me bada loss ho sakta hai. Examples hypothetical ya simulated hain; market rules effective date ke saath diye gaye hain — hamesha latest official circular confirm karo.