Strike text in the Investment Plan

Aug 6th, 2022
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In finance, the strike price (or exercise price) of an option is a fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.
The strike price, also known as the exercise price, is the predetermined price at which a specific security may be purchased (for a call option) or sold (for a put option) by the option holder until the expiration date of the options contract.
In options trading, the strike price, also known as the exercise price, is a predetermined price at which the holder of an option has the right, but not the obligation, to buy or sell the underlying asset. This asset could be a stock, commodity, index, or currency, depending on the type of option.
An options strike price tells you at what price you can buy (in the case of a call) or sell (for a put) the underlying security before the contract expires.
Say that a stock is trading at $100 per share. The $110-strike call option would give the holder the right to buy the stock at $110 on or before the date when the contract expires.
The basic rule is that the higher the strike price, the cheaper the option. That is because as you go higher in the strike, the option gradually moves from being in-the-money to at-the-money to out-of-the-money.
For call options, the strike price is the price at which an underlying stock can be bought. For put options, the strike price is the price at which shares can be sold.
Theres no such thing as a good strike price. But the strike price you choose, along with the expiration date, will determine the level of risk you assume. Typically, when you buy call options, the higher the strike price, the less expensive it will be.

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