| strike price n. The fixed price at which the owner of an option can purchase, in the case of a call, or sell, in the case of a put, the underlying security or commodity. |
Strike Price
The stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract.
Investopedia Commentary
When you exercise your option, this is the value that you get the shares for. Option strike prices typically increment $2.50 or $5.00.
Related Links
Options Basics Tutorial
Alternatives to Closing Below Intrinsic Value
See also: Call, Exercise, Market Value, Option, Put
strike price