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Strike Price

Definition: The strike price is the price at which you can buy or sell shares of stock by exercising your options.  If the options are in the money, you have made a profit.  The exercise price is also commonly referred to as the exercise price.

Advice: For call options, they are considered in the money if the underlying security trades above the strike price.  For put options, they are considered in the money if the underlying security trades below the exercise price.

 

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