For those new to the world of options trading, grasping the concept of the strike price is crucial to your success. When dealing with call options, the strike price is the predetermined level at which you can buy the underlying stock before the contract expires. This key element determines the intrinsic value of your option and plays a significant role in your investment strategy. Let’s break down the strike price and how it functions within call options.
What Is a Call Option?
A call option gives the holder the right, but...