Glossary/ Options
Options
Strike
The price written into an option contract, at which it can be exercised.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Support and resistance, defined properly — Where levels come from, and why most people draw them wrong.
- Read the payoff before the price — Maximum loss, maximum gain and breakeven, in one picture.
- What you are paying for — Intrinsic and time value, separated properly.
- Delta, in plain language — How much the option moves when the underlying moves.
Nearby terms
Option chain · Payoff diagram · Premium · Put option · Rollover · Spread (strategy)