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Option
In the Money
Strike Price
Out of the Money

Strike Price
Term category: Derivatives
In 10 words or less:  The price at which an underlying security for an option can be bought or sold.

Definition: The strike price is the price at which you can buy or sell shares of stock by exercising your options.  If the options are in the money, you have made a profit.  The exercise price is also commonly referred to as the exercise price.

StockJargon Advice: For call options, they are considered in the money if the underlying security trades above the strike price.  For put options, they are considered in the money if the underlying security trades below the exercise price.

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