premium income

Premium income

The income received by an investor who sells an option.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The total premium income from the acquired entity totaled approximately 806 million euros in 2018, with 762 million euros stemming from motor and 45 million euros stemming from other P/C operations.
Aug 21, 2019 (LBO) - Sri Lanka's Ceylinco Life reported a six month net income of 14.7 billion rupees with a premium income up 5.7 percent to 8.8 billion rupees.
It insured a total of 745,800 lives at a generated premium income of P7 billion (P7,208,370,000).
Summary: Mumbai (Maharashtra) [India], May 23 (ANI): The government-owned General Insurance Corporation (GIC) said on Thursday that its gross premium income grew by 6 per cent to Rs 44,238 crore for the current year ended March 2019 from Rs 41,799 crore in the previous year.
Funa said in a statement that Sun Life of Canada's premium income amounted P37.39 billion in 2018.
This happened as the industry's total premium income improved by 11.67 percent to P290.15 billion last year from P259.82 billion in the previous year.
The gross premium income of the non-life insurance companies reached BGN 403,109,672 at the end of February, according to the Financial Supervision Commission.
The firm said that its premium income had increased by 11.9 percent year on year in the first quarter of 2019.
AXA Philippines, one of the country's top insurance companies, reported that its first-half performance for 2018 has continued on the upward trajectory driven by higher annualized premium equivalent (APE) and robust growth in total premium income (TPI).
The good performance was driven by a marginal growth in both gross premium income and claims incurred which increased 2.49 and 2.16 per cent respectively.
ISLAMABAD -- Postal Life Insurance (PLI) has issued 1,302,421 policies and paid premium income on fresh policies of Rs.
MANAMA: LIC (International) registered first premium income of $371 million for the first 10-and-a-half months this year, a growth of more than 36 per cent.

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