facebook  youtube  blogger

Trading Educators Blog

#1 Trading Blog Site

Strike Price

Question by a Trader: Joe I am new to options and I'm confused about some of the terminology. What exactly do they mean by "Strike Price?"

The Strike Price is the price at which an option can be exercised, and refers to the price of the option's underlying asset. In a call option, the strike price is the price at which the option holder can purchase the underlying asset. For a put option, the strike price is the price at which the option holder can sell the underlying asset.



Sign up for our FREE weekly Chart Scan newsletter.

Master Trader Joe Ross wants you to learn trading and he created products to do just that, teach you how to trade. Go to our website to find which ones best fit your trading style. Let's learn the art of trading Joe Ross' way!

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Thursday, 13 June 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.