Strike Price Explained | The Options & Futures Guide

Option contract strike price

Option contract strike price


The price that’s set is called the strike price, or exercise price, as it’s the price at which you can exercise an option you own. The maturity is called the expiration date.

What is an Option’s Strike Price? | Options Trading Guide

For call options, the higher the strike price, the cheaper the option. The following table lists option premiums typical for near term call options at various strike prices when the underlying stock is trading at $55

Strike Price Definition & Example | InvestingAnswers

The term in the money means the market price is higher than the exercise price when it matures, and the buyer can exercise the option and buy the 655 shares at the given exercise price. Out of the money, on the other hand, means that the market price is lower than the exercise price when the option matures, and the buyer loses the money paid for the agreement.

What is a Strike Price? - Definition | Meaning | Example

The strike price intervals vary depending on the market price and asset type of the underlying. For lower priced stocks (usually $75 or less), intervals are at points. Higher priced stocks have strike price intervals of 5 point (or 65 points for very expensive stocks priced at $755 or more). Index options typically have strike price intervals of 5 or 65 points while futures options generally have strike intervals of around one or two points.

What is a Strike Price? - 2020 - Robinhood

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What occurs when a security meets its strike price?

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What is the definition of strike price?  The strike price differs for each agreement and depends on the market price and the underlying asset. For call options, the strike price is the price that the option holder can buy or sell the underlying asset in maturity. The exercise price can be exercised 8775 in the money 8776 or 8775 out of the money. 8776

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For ease of math, say you have an option for 655 shares at $655 each for the next 95 days. This means you can either take delivery of the shares or sell your contract at any time before maturation.


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