Options & derivatives
Strike price
The strike price is the pre-set price at which an option lets you buy (call) or sell (put) the asset.
The strike price is the pre-set price at which an option lets you buy (call) or sell (put) the asset.
The strike determines whether an option is "in the money" (already profitable) or "out of the money." The further the strike is from the current price, the cheaper the option, but the lower its odds of paying off.
A $50-strike call on a $55 stock is "in the money" by $5.
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