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 ?
ISLAMABAD -- Postal Life Insurance (PLI) has issued 1,302,421 policies and paid premium income on fresh policies of Rs.
remained the country's top insurance firm for the sixth straight year in 2016 in terms of total premium income.
Global Banking News-November 16, 2015--Nigeria's Staco Insurance reports increase in premium income
Group companies Kooperativa, Ceska podnikatelska pojistovna (CPP) und Pojistovna Ceske sporitelny (PCS) recorded a combined increase in premium income of some 3.
British life insurer Pru Life UK reported that its total gross premium income increased by 15 percent last year as the company continued to broaden the range of protection and savings options for its customers.
Investment services provider Nuveen Investments revealed on Monday that an additional, post-merger distribution has been declared by the Nuveen Maryland Premium Income Municipal Fund (NYSE:NMY) and Nuveen Virginia Premium Income Municipal Fund (NYSE:NPV).
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.
Premium income in Belgium remained almost unchanged at EUR 1.
It is expected that the company would get INR1bn in order to increase its new premium income by 50 per cent.
On Tuesday, LIC Chairman T S Vijayan said during the current fiscal, the life insurance company is eyeing a premium income growth rate of 20 percent.
Market analyst Datamonitor said premium income from PPI fell by nearly four per cent during 2006 to pounds 5.
In general, life insurance companies were still lagging behind general insurance companies in premium income in 2003.