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In options trading, the "premium" refers to the price of an options contract, which includes both intrinsic and extrinsic value.

In options trading, intrinsic value is an option's value on its own, independent of external factors like time and volatility. Extrinsic value, by contrast, represents the portion of an option's value influenced by these aforementioned external factors. Together, these two components comprise the complete value of any options contract.

In options trading, moneyness refers to the relationship between an options contract's strike price and the underlying asset's current price. All options fall into one of three moneyness states: in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM).

Options expire on a specific date set in the contract, with expiration cycles that include monthly, weekly, and 0DTE (zero days to expiration) options. To mitigate risk, options traders must understand key concepts such as time decay, pin risk, and auto-exercise.

When a long put or call holder exercises their option, the corresponding short is assigned the underlying asset.

An options chain displays all listed calls and puts for a specified underlying asset. Option chains are organized in an accordion style. Once an expiration period is selected, all calls and puts that expire within the specified period are viewable.