Investing Dictionary
Options & Bonds

What is Strike Price?

The price at which an option lets you buy or sell

Full Explanation

The strike price is the fixed price written into an options contract. For a call, you want the stock to go above the strike. For a put, you want it to go below.

Pro Tip

Options with strike prices close to the current stock price are "at the money." Far away = "out of the money."

Related Options & Bonds Terms

Covered Call

Selling someone else the right to buy your stock at a higher price

Credit Rating

A grade for how likely a borrower is to repay their debt

Expiration Date

The last day an option can be used

Implied Volatility

The market's expectation of how much a stock will move

View all Options & Bonds terms →

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