Strike Price

[straɪk praɪs]

What is the definition of Strike Price?

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Using Strike Price in an Example

If an investor purchases a call option for a stock with a strike price of $50, the investor has the right to buy the stock at $50 per share, regardless of the actual market price, before the option expires.

Using Strike Price in a sentence

During the meeting, the trader emphasized that the strike price of the options was well below the current market value, presenting a potential high-profit opportunity.

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