What is the Strike Price in Options?

The strike price is the predetermined price at which the buyer of an option has the right to buy or sell the underlying asset (depending on whether it is a call or put option). To better understand the strike price’s meaning in the share market, note that:

• In a Call option, you get the right to buy at the strike price.
• In a Put option, you get the right to sell at the strike price.

For example, in a Nifty 25,000 Call option, “25,000” is the strike price. It is the reference price used to determine the option’s value relative to the Nifty level.

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