https://s3-us-west-2.amazonaws.com/secure.notion-static.com/89aaa483-0173-4f95-8f5c-06a260e8a11b/Untitled.png

Spot premium for opening long option token positions (buying long options):

$1 - (strikePrice * underlyingReserve / shortReserve)$

Spot premium for closing long option token positions (selling long options)

$1 - (underlyingReserve / (shortReserve * strikePrice))$

Where underlyingReserve and shortReserve correspond to the Uniswap Pair for the option.