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Trading glossary · advanced

strike price

The set price on a buy-or-sell ticket at which you are allowed to buy or sell.

The fuller meaning

The fixed price at which an option can be exercised: a call gives the right to buy at the strike, a put to sell at it. The strike's position relative to the underlying's price decides whether the option is in, at or out of the money, and with the premium it sets breakeven.

strike price, also called strike.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger