premium income

Premium income

The income received by an investor who sells an option.

Premium Income

The money one makes from selling (or writing) an option contract. The term derives its name from the fact that the original sale price of an option is called the premium. One easy way to make money investing at little risk is to write covered options one does not expect to be exercised, and profiting from the premium income.

premium income

Fees in the form of premiums received by an investor who sells short a call option or put option. For example, an investor holding shares of BP can earn premium income by writing covered call options that give the buyer of the calls the right to purchase the option writer's BP shares at a fixed price until a stated date.
References in periodicals archive ?
Global Banking News-November 16, 2015--Nigeria's Staco Insurance reports increase in premium income
ADPnews) - Jan 28, 2011 - Austrian insurer Uniqa (WBAG:UQA) last year raised for the first time its premium income above the EUR 6 billion (USD 8.
PARIS, August 10 /PRNewswire-FirstCall/ -- - CNP Assurances Announces Consolidated Premium Income Under IFRS of EUR5,861.
E&P from the conduct of an insurance business means net premium income, rather than income from insurance company activities (CRTC [section]24410(c)).
said Monday its unconsolidated net premium income fell 0.
Overall growth in premium income across the industry also helped to keep database fees the same for 2004 as they were for 2003, Boyd said.
From the $10 million in annual premium income, the company expects to pay $7 million in claims, which is a 70-percent loss ratio for the year.
Nuveen Massachusetts Premium Income Municipal Fund MTP
CNP Assurances Announces an 18% Increase in Consolidated Premium Income to EUR5,687 Million for the Fourth Quarter of 2004 and an Increase of Over 10% to EUR21,442 Million for the Full Year
4% in premium income thanks to brisk sales of new insurance products.
CGU plc and Norwich Union plc, two of the United Kingdom's largest international composite insurers, intend to merge to form a European insurer with annual premium income and retail investment sales of about [pounds]26 billion (about $16.
UPS contended that NUF earned the EVCs as insurance premium income, that OPL earned reinsurance premium income, and, therefore, that the EVCs did not constitute income taxable to UPS.