Cluenex
Log inStart free
Glossary · Options

Strike price

The price at which an option lets you buy (call) or sell (put) the shares.

Why it matters

The strike decides how far the stock must move for the option to pay. Strikes near today’s price cost more and react most to price.

How to read it

At the money: strike near the price. In the money: already worth exercising. Out of the money: needs a move.

Related

In, at and out of the moneyWhere the strike sits against today’s price.DeltaHow much an option’s price changes when the stock moves $1. Also a rough chance of finishing in the money.

In the Cluenex app, this explanation opens next to every strike price figure, with the live reading for the stock you are looking at. Open it in Cluenex