Strike Price

The Strike Price is the price at which the holder of an Options contract can Exercise their right to either buy or sell an Underlying asset (depending on whether they hold a Call or Put Option). A range of different Strike Prices are offered for each Expiration period. The Strike Price is different from the price of the option contract, which is how much an Option write is prepared to sell an option at the specified Strike Price for. The Strike Prices remain fixed for the duration of the contract but the Option Prices for Call or Put Options will fluctuate depending on a variety of factors, one of which is how close the current price of the Underlying asset is to the Strike Price. This is referred to as 'Moneyness'.