> For the complete documentation index, see [llms.txt](https://docs.earn.polynomial.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.earn.polynomial.fi/fundamental/premium-collection.md).

# Premium collection

The premium is collected and distributed after the expiry date, if the option that was sold in the strategy expired worthless(or worth less than the premiums collected) <br>

> Yield is calculated as below;\
> \
> **Yield = Total Premium Collected - Intrinsic value of options.**\
> \
> Yield generated can be profitable or loss-making for the user. This depends completely on the market movements


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