instruments · beginner
Strike price
The strike price is the predetermined price at which an options contract can be exercised.
Calls gain intrinsic value when the spot moves above the strike, and puts when it moves below.
Indian index and stock options list multiple strikes around the spot in defined intervals.
At-the-money, in-the-money, and out-of-the-money labels depend on strike versus spot.
Open interest often concentrates at psychologically important strike levels near expiry.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.