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Strike Price

The strike price is the fixed price written into an option contract at which the buyer can exercise their right to buy (call) or sell (put) the underlying.

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What It Means

The strike price is the fixed price written into an option contract at which the buyer can exercise their right to buy (for a call) or sell (for a put) the underlying asset.

Example

If Nifty is trading at ₹24,500 and you buy a 24,600 call, your strike price is 24,600. That option only becomes worth exercising if Nifty rises above 24,600 before expiry; below that, it's out-of-the-money and the strike price never comes into play.

  • Call Option — the contract type a strike price applies to on the buy-high side
  • Put Option — the contract type a strike price applies to on the sell-low side
  • Option Chain — where every available strike is listed together
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