Glossary
Strike price: meaning, example and why it matters
The fixed price at which the holder of an option can buy (call) or sell (put) the underlying asset.
Worked example
A call and a put both have a ₹500 strike. With the stock at ₹520 the call is ₹20 in the money (520 − 500) and the put is out of the money.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
The strike is the fixed price against which an option's value is measured at expiry.
Related terms
See it in practice
Frequently asked questions
Who chooses the strike price?
The exchange lists a set of strikes for each underlying and expiry. Buyers choose among the listed ones.
Is this page investment advice?
No. Strike price is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.