Learn what an option premium is, how it's priced, and why it matters in trading. Explore the factors influencing option value with clear examples.

As new traders flood the market, a return to the basics may help novices understand the fundamentals of options trading.

Options trading can sound complicated and risky to novices, so beginners often steer clear. While their hesitation is understandable, not much is required to get started — but the process, terminology ...