what is strike price

The strike price is the price at which the holder of an option can buy or sell the underlying security when the option is exercised. For a call option, the strike price is the price at which the security can be bought, while for a put option, it is the price at which the security can be sold. It is a key factor in the value of an options contract, and it affects the potential for profit or loss. The strike price is preset by the exchanges and is an important consideration when trading options