What example are you referring to?
Please define what an average day looks like in the market I am still searching for that
Market change every day
I believe the questions was about what is premium
Premium is the time/interest/dividend/imvplied volatility part of an option - the extrinsic value.
Is is easier seen in a spread or call or put option
say on a spread
1100 to 1120 - with the market trading at 1104 and the spread offer price at 1105
The premium would be the difference between where the underlying market is and the spread price the 1105 (spread offer) less 1104 (underlying market) for a premium/extrinsic of $1.00 (the time dividend interest implied volatility value) as if the market did nothing and stayed flat the market would expire at 1104 and you would keep $4.00 the intrinsic value of the option the real value that has nothing to do with time.
A binary is a bit more complex than this...
but to make it simple
If the market is at 1104 and you are buying say at 1105 at say $25 that is pure premium as if the market expires at 1104 and does not move that bought binary would expire worthless (you are the payer of the premium)
If the market is at 1104 and you are buying say a 1103 binary for say $75 then there is $25 of premium as if the market says flat and does nothing (you put uip $75 in real value (as the binary is ITM) and you will collect $25 in premium so long as the market stays above 103 so if it stays and time passes and it stays at 1104 you will keep the premium of $25.
If you where the seller of the binary selling the 1105 for say $25 (not account for bid/ask to keep it simple) and the market stayed flat at 1104 you would put up $75 in real intrinsic value and if the market did nothing you would collect the extrinsic value of the binary being ITM before and then at expiration of $25 with the binary expiration with a payout of $100 so long as it was below 1105 (and it would be if it stayed at say 1104). (you are the maker of the premium)
A premium collection trade has a higher probability in that the market can move in the person direction, stay flat, or even against them some and profit. However, this often has a higher risk. This higher risk can be offset by using stops. Obviously using a stop though lowers the probability somewhat as the market could move against you a lot and then back again but you may have been stopped out. Regardless the probability is in your favor so log as stops are used.
A premium payer has a much higher potential return but must be right about direction and how fast it will get there setting the odds against them therefore lowering the risk and increasing the payout due to a lower expected profit % of trades.
Hope that helps