How often are option premiums paid?
The premium of an option is paid by the buyer to the seller upon the sale of the contract—not at the contract's expiration. Option premiums are not refundable.
How do you get premium from options?
First and foremost, it happens when you buy an option, and then sell the opposite type of option. This would occur by buying a call and selling a put OR buying a put and selling a call. If you buy a call and sell a put, then you're collecting the premium from the put option to help cheapen up the price of the call.
Is option premium paid upfront?
The option premium is a non-refundable, up-front fee that the option buyer pays to the option seller when the contract is purchased. The premium price is primarily determined by the intrinsic and time value of the option.
When I sell option do I get premium?
The short answer is that you get the premium immediately upon the successful execution of your option order or trade.