strike price

Option's trigger point

Strike price is the fixed price at which the holder of an options contract can buy or sell the underlying asset.

If you hold a call option with a strike price of $50, you can purchase the stock at $50 regardless of its current market value.

The relationship between strike price and market price determines whether exercising the option is profitable.

options

call

Contact by phone

putPlace in position
exerciseActivity for fitness
premiumAdded cost for better

expiration · expiry · underlying · derivative · delta · gamma · theta · vega · rho · volatility

trading

buyer

One who acquires things

sellerOne who trades goods
positionLocation or stance
marketVenue for trade

securities · equity · leverage · speculation · arbitrage · liquidity · execution · order · bid · ask

threshold

barrier

Obstruction preventing passage

levelHorizontal or uniform position
breakevenNo profit, no loss
targetObject of pursuit

ceiling · floor · boundary · benchmark · cutoff · point · mark · trigger · knockout · cap

Categories

financial termswealth, asset, currency, balance sheet, audit
stock marketstock, shares, stocks, trading, stock market
optionscall option, put option, stock option, option to buy
stock optionsstock options, vesting, vesting schedule, ISO, ISOs
pricingpricing, overpricing, discounts, overcharge, markdowns
equityshareholder equity, common stock, preferred stock, equity stakes, retained earnings

Opposites

fixed vs. variable pricing

strike pricemarket price

Current exchange value

spot price · market value · fair market value · quoted price · ask price

options contract components

strike pricepremium

Added cost for better

extrinsic value

Family

price, strike, striking, struck, striker, strikes, strikers, strikeout, restrike

Familiarity: Top 500,000
Profile: Used worldwide · Timeless · Abstract · Rated G