Strike Price
Also called: strike
The fixed price at which an option lets you buy or sell the shares.
Every option has a strike, the agreed price for the 100 shares. For a call, it is the price you can buy at; for a put, the price you can sell (or be forced to buy) at. The strike you choose sets both your risk and how much premium you collect or pay.
For example
On a stock at $22, a $20 put strike means you are agreeing to buy at $20 if assigned. A $25 call strike means you are agreeing to sell at $25 if the shares are called away.
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