Option: Option is a contract that gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or other instrument at a specific price within a specified period of time, regardless of the market price of that instrument. There are two types of options: Put Options and Call Options.
Premium: Premium is the price (payment) paid by the buyer of an option to an options seller. Options premium is received by the seller of an option (by options writer), In futures market Premium is the cash prices that are above the futures price. At the same time term "Premium" may refer to the amount a price would be increased to purchase a better quality commodity. In some cases Premium stands for a futures delivery month selling at a higher price than another.
Buyer: Buyer is a market participant (trader/investor) who takes a long futures position or buys an option. An option buyer is also called a taker, holder, or owner.
Intrinsic Value: Intrinsic Value is the amount by which an option is in-the-money. Intrinsic Value measures the value of an option or a warrant if immediately exercised, that is, the extent to which it is in-the-money. The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for the commodity or futures contract. A call with a strike price of $400 on gold trading above $420 has $20 Intrinsic value. A put with a strike price of $400 on gold trading below $380 has $20 Intrinsic value.
Mini: Mini (e-Mini) refers to a futures contract that has a smaller contract size than an otherwise identical futures contract.
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Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.