This return considers the premium a seller would receive from the sale of an option to be profit. This is the stock volatility that is implied by the actual trading price of an option. This phrase describes where the strike price of an option falls relative to the underlying stock price. For covered and naked call options, it is when the stock price is above the strike price of the option. For covered and naked put options, it is when the price of the stock is lower than the strike price of the option.
Every option premium is comprised of some intrinsic value and some time value.
The intrinsic value is based on the volatility of the stock price and if the stock price is above or below the strike price. An acronym that stands for Long-term Equity Anticipation Securities. Once the March series options are the current month, the next January LEAPs change symbols to the normal root symbols and LEAPs are generated for three January's ahead in time. When an investor is a holder of an equity or option position over time when an increase in the price for the option or equity would be favorable. If you are long on a stock, you hope that the price goes up.