Options

Options Premium

The total dollar amount paid for an options contract, calculated as the option price multiplied by 100 (contract multiplier).

Formula

Premium = Option Price × 100 × Number of Contracts

More Details

What is Options Premium?

Options Premium is the total cash outlay for buying an options contract. In options flow analysis, premium size is a key filter for identifying significant institutional trades.

Learn more: Options Flow Features | Options Flow Scanner

Premium Calculation

For a 2.50 call option with 100 contracts:
Premium = 2.50 × 100 × 100 = 25,000

Premium Thresholds in Flow Analysis

  • Small: Under 50,000 - Retail activity
  • Medium: 50,000 to 250,000 - Active traders
  • Large: 250,000 to 1,000,000 - Institutional
  • Whale: Over 1,000,000 - Major positioning

Premium vs Contract Size

A 10,000 contract trade on a 0.05 option = 50,000 premium
A 500 contract trade on a 10.00 option = 500,000 premium

Premium is more meaningful than contract count for gauging conviction.

TradesViz Implementation

Filter flow by premium size to focus on the most significant institutional activity.

Where to find it in TradesViz

Home > Tools > Options Flow (or click the 4 boxes icon at top right > Options Flow). Premium column displays total dollar value. Filter by minimum premium (50k, 100k, 250k, 1M+) to focus on institutional-size trades. Premium-based filtering is more meaningful than contract count for conviction analysis.

Example

1,000 contracts of a 5.00 call equals 500,000 in total premium.

Calculate Your Options Premium
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