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It’s the price at which you can buy or sell.
If you're going to understand options, you've got to know what strike prices are and how they work. While the concept of a strike price in and of itself is not that complicated, the use of options...
Strike price labeled on the graph of a call option.To the right, the option is in-the-money, and to the left, it is out-of-the-money. In finance, the strike price (or exercise price) of an option is a fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.
In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option.
For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price. For a put option, the option is in-the-money if the strike price is higher than the underlying spot price; then the intrinsic value is the strike price minus the ...
The breakeven price of the option is equal to the strike price plus the option premium. For example, say Tesla’s stock trades at $300, but you think it’s headed higher over the next few months ...
Option type, either P or C, for put or call; Strike price, as the price x 1000, front padded with 0s to 8 digits; Examples: [4] SPX 141122P00019500. The above symbol represents a put on SPX, expiring on 11/22/2014, with a strike price of $19.50. LAMR 150117C00052500
As you can see, above the strike price the value of the option (at expiration) increases $100 for every one dollar increase in the stock price. As the stock moves from $23 to $24 – a gain of ...