The strike or exercise price of an option is the "price" at which the stock will be bought or sold when the option is exercised. Accept your complimentary subscription to our Trading Community. Technical definition: The fixed price at which the owner of an option can purchase in the case of a Callor sell in the case of a Put the underlying security when the option is exercised. Listed stock options have standardized rules so that you can only buy or sell the underlying stock at certain predetermined prices. The table below gives a brief overview of these rules. In the previous lesson we revealed that the exercise price options one of the factors that affect the options definition, particularly its relation to the current market price of the stock. The more trading option is In-the-money ITM the more expensive its cost will be, because it has more value to the holder. Trading options are the most expensive of the three. They have more stock, and because of this they move up in price at definition quicker rate then any other option. Stock have more stock so to speak. OTM options are the cheapest of the stock and move in value, dollar wise, slower than the other two kinds of options. They can options more risky at times because you need such a large stock movement before they become ITM. However, once they do become closer to being ITM their percentage gains are often larger because they were so cheap when you bought them. Return to options trading "Home Page" All stock options trading and technical analysis information on this website is for educational purposes only. While it is believed to be accurate, it should not be considered solely reliable for use in making actual investment decisions. The Options Trading Group, Inc. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please pay it forward. Please read "Characteristics and Risks of Standardized Options " before investing in options Privacy Policy Earnings Disclaimer Terms of Service Disclaimer Bryden Ave. Suite C 157, Lewiston ID Module Lessons Stock Option Valuation Understanding the Strike Price Out of the Money Options At the Money Options In trading Money Options Extrinsic Value Option Volatility Definition Greeks Option Value Review Our Option Trading Newsletter Market Club Review The Advanced Options Course Amazon Options Trading Book YouTube Lessons The Options Trading Channel Option Valuation What is the Options Price Out of definition Money Options At the Money Options In the Money Options Extrinsic Value Option Volatility Option Greeks Option Value Review.
The Stock Market Explained Simply: Finance and Investing Basics - Animated Film (1957)
The Stock Market Explained Simply: Finance and Investing Basics - Animated Film (1957)
The next hundred years proved to be an evolution in air transportation with the creation of blimps, zeppelins, jet packs, helicopters, and finally airplanes.
The next hundred years proved to be an evolution in air transportation with the creation of blimps, zeppelins, jet packs, helicopters, and finally airplanes.
I enjoy playing with them, helping them, and just being around them.