In finance, premium can mean many things. It most frequently refers to the following definitions. A security is often trading at a premium when it is priced higher than its theoretical or intrinsic worth (in contrast to a discount). If the price paid for a fixed-income security is greater than par, the distinction between that price and the security's face amount is referred to as a premium. Premium also refers to the cost of purchasing an insurance policy or the recurring payments that an insurer requires to offer coverage for a specific amount of time. Finally, the premium is the full cost of purchasing an option contract.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr