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Author Message   Kubang Celebrity Bewarse Username: Kubang Post Number: 36999 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A Votes: 0 Posted on Thursday, August 17, 2017 - 2:44 pm:    Ntr_rocks: same thing. in options you pay the premium for volatility and time. ekkuva volatility vunde stocks ki implied volatility premium in options ekkuva vuntundi. rendo aspect vachi time, longer the duration higher the premium. For example, if you take SBUX trade; same $55sp and Jan expiry, puts are currently available at $3.45 Stock is trading at $53.15 that means that put option is in the money already (55-53.15 = 1.85 in the money and rest 1.6 is the premium for volatility and time). Assume the stock goes to $50 by expiry, your put is worth at least $5; if it stays at $53 the put is worth $2 and so on.. Ignorance is bliss