Key Concepts: Exercise Price (Strike Price)
Title: The Strike Price: The pivot of your options contract 🎯⚖️
Content:
The Strike Price (exercise price) is the agreed price at which the buyer of an option can buy (Call) or sell (Put) the underlying asset.
📌 Three states to know:
ITM (In the Money): The option has immediate intrinsic value.
ATM (At the Money): The market price is equal to the Strike Price.
OTM (Out of the Money): The option has no intrinsic value (only time value remains).
Choosing the right Strike depends on your risk tolerance and your price objectives.
#StrikePrice #ITM #OTM #Options101 #BinanceSquare
Title: The Strike Price: The pivot of your options contract 🎯⚖️
Content:
The Strike Price (exercise price) is the agreed price at which the buyer of an option can buy (Call) or sell (Put) the underlying asset.
📌 Three states to know:
ITM (In the Money): The option has immediate intrinsic value.
ATM (At the Money): The market price is equal to the Strike Price.
OTM (Out of the Money): The option has no intrinsic value (only time value remains).
Choosing the right Strike depends on your risk tolerance and your price objectives.
#StrikePrice #ITM #OTM #Options101 #BinanceSquare