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What is a strike price?What is a strike price? It is the price at which the owner of an option can purchase (call) or sell (put) the underlying stock when exercising the option contract. They are usually in increments of $2.50 or $5.00. You identify options by the month they expire, and the strike price. For example, an “XYZ July 30 Put” would be a Put option on XYZ stock at the strike price of 30 and it expires in July.An option is considered In The Money when the strike price is below the current market price for a call option or above the current market price for a put option. These options have intrinsic value. An option is considered Out Of The Money When the strike price is above the current market price for a call option or below the current market price for a put option.
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