Earlier efficiency will not be a guarantee of potential return, neither is it indicative of future efficiency. Investing consists of risk. The value of the financial investment will fluctuate and you might drop dollars. 

The price you purchase a possibility, called the top quality, has two factors: intrinsic value and time worth. Intrinsic benefit will be the difference between the strike selling price and the share price tag, Should the stock cost is previously mentioned the strike. Time benefit is whatever is left, and variables more info in how risky the stock is, the time to expiration and interest charges, between other elements.