Tag: strike price

Introduction:When it comes to options trading, strike price plays a crucial role in risk management. Understanding how strike price impacts risk can significantly influence trading decisions and overall portfolio management. In this article, we will explore the importance of strike price in risk management and provide external resources where traders can gain further insights on utilizing strike prices effectively. Defining Strike Price:In options trading, the strike price is the predetermined price at which the underlying asset can be bought or sold when exercising the option. It is the price at...