An option’s strike price is the predetermined price at which the underlying asset will be bought or delivered (sold) when the option is exercised. Generally for equity options, strike price intervals are $2.50 for stocks priced between $5 – $25, $5 for stocks priced between $25 – $200, and $10 for stocks priced greater than $200.
Strike prices can be seen easily as the center of the option chain within the TOS platform:
Return to the main options glossary page to learn more terms.
