Options Basics

Option Strike Price

The option strike price is the specific price at which an underlying security can be bought or sold with an options contract.
Option Strike Price
Kirk Du Plessis
Apr 19, 2021

The option strike price is the exact price at which you agree to buy or sell the underlying stock in the future. Another name for the strike price is the exercise price of the option contract but don't get too confused on the terminology as long as you understand what it means. A quick tip I always use to remember the strike price is that it's the point at which I "strike a deal" on the stock. During the video we'll look at some different strike prices for AAPL stock.

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Option Premiums
The option premium is the price of an options contract. Option premiums are determined by intrinsic and extrinsic value.

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