What is Strike Price?
The strike price is the fixed price at which an option can be exercised: the price a call holder can buy at or a put holder can sell at. Where the strike sits relative to the current market price determines whether an option is in the money, at the money, or out of the money. The strike is chosen when the option is created and does not change.
Why Strike Price matters
It anchors an option's value, so reading any option starts with knowing its strike.
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