Understanding Strike Prices and Standardized Terms

Strike Selection for Debit Spreads

Learn about the mechanics of a debit spread, including strike selection for a Bull Call Spread and a Bear Put Spread.

Reverse Stock Splits and Strike Prices

Learn why your strike price doesn't change in reverse splits, how deliverables are reduced and the special risks of subsequent adjustments.

What is a Strike Price?

The strike price is the price at which an option can be exercised by its holder (owner).

Protective Put: Expiration Selection

Learn how time decay and volatility affect a protective put position based on expiration date selection.

Options Expiration Explained

Learn what happens when an option contract approaches expiration.