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strike price

   Also found in: Financial, Wikipedia 0.01 sec.
strike price
n.
The fixed price at which the owner of an option can purchase, in the case of a call, or sell, in the case of a put, the underlying security or commodity.


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By doing so, he promises to sell the number of shares in a contract to the buyer at the defined strike price in case the option is exercised.
Let us consider some of these concepts: IN THE MONEY ( ITM) OPTION An ITM call option is one where the strike price is less than the market ( spot) price of the underlying stock/ index, that is, the spot price is more than the strike price.
Potential Rewards are not what they Seem The first thing a trader needs to consider when buying an option is how much time is needed, and what strike price is a good target.
 
 
 
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