strike price
noun
: an agreed-upon price at which an option contract can be exercised
called also striking price
Example Sentences
Recent Examples on the Web Rolling down from the $40 to the $33 strike price should earn you a net credit of $0.25, as shown below. 
John Dobosz, Forbes, 16 July 2022 But if the company’s stock price fall below the strike price, the options are underwater and considered worthless. Mike Freeman, San Diego Union-Tribune, 25 Aug. 2022 What is more, Berkshire also owns more than 80 million warrants with a strike price of $59.62 that kick in after the preferred shares are redeemed. Jinjoo Lee, WSJ, 3 Aug. 2022 On expiry, if the market price of the underlying asset is below the strike price, the call buyer will not exercise the right to buy the contract, and the premium (yield) is kept by the option seller. Laura Vidiella Del Blanco, Forbes, 1 July 2022 Employee equity upside is tied to the company’s 409A valuation, which represents the fair market value of a company’s common stock and is used to determine the option strike price. Dharmesh Thakker, Forbes, 22 Apr. 2022 The figures show that investors placed some highly optimistic bets, with many purchasing call options on ether with a $5,000 strike price. Charles Bovaird, Forbes, 29 Oct. 2021 Tesla’s board of directors set out 10 ambitious goals for Musk, promising him a total of 26,374,505 shares of Tesla stock options, with a strike price of $6.24 per share, if they were all met. Vieje Piauwasdy, Fortune, 10 Nov. 2021 Warrants typically have a strike price of $11.50, meaning the holder would pay $11.50 to receive a share of the company. Amrith Ramkumar, WSJ, 8 Feb. 2022 See More
John Dobosz, Forbes, 16 July 2022 But if the company’s stock price fall below the strike price, the options are underwater and considered worthless. Mike Freeman, San Diego Union-Tribune, 25 Aug. 2022 What is more, Berkshire also owns more than 80 million warrants with a strike price of $59.62 that kick in after the preferred shares are redeemed. Jinjoo Lee, WSJ, 3 Aug. 2022 On expiry, if the market price of the underlying asset is below the strike price, the call buyer will not exercise the right to buy the contract, and the premium (yield) is kept by the option seller. Laura Vidiella Del Blanco, Forbes, 1 July 2022 Employee equity upside is tied to the company’s 409A valuation, which represents the fair market value of a company’s common stock and is used to determine the option strike price. Dharmesh Thakker, Forbes, 22 Apr. 2022 The figures show that investors placed some highly optimistic bets, with many purchasing call options on ether with a $5,000 strike price. Charles Bovaird, Forbes, 29 Oct. 2021 Tesla’s board of directors set out 10 ambitious goals for Musk, promising him a total of 26,374,505 shares of Tesla stock options, with a strike price of $6.24 per share, if they were all met. Vieje Piauwasdy, Fortune, 10 Nov. 2021 Warrants typically have a strike price of $11.50, meaning the holder would pay $11.50 to receive a share of the company. Amrith Ramkumar, WSJ, 8 Feb. 2022 See More Word History
First Known Use
1972, in the meaning defined above