Strike Price

Options

The strike price is the fixed price at which the option holder can buy (with a call) or sell (with a put) the stock.

It is set in the contract and does not change over the option's life. For the same stock and expiration, options trade at many different strikes.

Example

If you hold a $50 strike call and the stock rises to $60, you can exercise and buy the shares at $50; the option's intrinsic value is $10 per share.

4 Links