Strike Price Definition For Options

An option contract’s Strike Price is the price that the underlying asset must be above (call) or below (put) before an option can be executed.

An option is said to be Out-Of-The-Money when it is below (call) or above (put) it’s strike price, At-The-Money when it is equal to its strike price, and In-The-Money when it has successfully passed its strike price.

Options can’t be executed until the underlying asset has reached the strike price, before its expiration date.