5

I'm trying to learn some basic arbitrage and I'm reading about tons of different strategies, but it looks as though option premiums are often less than $0.10.

4

Look for options with distant expiration dates and volatile underlying stocks.

1

Options are priced pretty close to the Black–Scholes model. The key factors are the current stock price, strike price, time to expiration, the risk-free rate of return, and most important, the stock volatility. I say the volatility is most important as all other variables are pretty static, the thing differentiating two $50 stocks is volatility.

Not knowing your actual goal, I'm not sure what else to offer. As James stated, the premium will rise for options that have longer til expiration.

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