Strike Price

An option’s strike price is easy to identify. Look at the symbol and you can identify the strike price. For example, consider the following symbol:

SPU445C

This is the symbol for the Standard & Poors 500 Index (SP) September (U) 445 strike price (445) call option (C). Knowing the strike price (445) is important to evaluating the value of a position involving the option. The definition of strike price is the price an underlying instrument will be bought or sold if the option is exercised.