strike price

noun

: an agreed-upon price at which an option contract can be exercised

called also striking price

Examples of strike price in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
There is risk on the upside, however, where the stock falls but then powers above the strike price – and then the investor misses the sharp appreciation. Darla Mercado, Cfp®, CNBC, 29 Oct. 2024 The trade This involves purchasing a put option with a higher strike price and simultaneously selling a put option with a slightly lower strike, creating a net debit position. Nishant Pant, CNBC, 29 Oct. 2024 Sweden, meanwhile, fares worse, performing badly on factors such as the scope of the plans and strike price, the Index study said. Ryan Browne, CNBC, 3 Oct. 2024 Options traders risk losing the premium paid for the contract if the stock fails to rise above the strike price. Jesse Pound, CNBC, 25 Sep. 2024 See all Example Sentences for strike price 

Word History

First Known Use

1972, in the meaning defined above

Time Traveler
The first known use of strike price was in 1972

Dictionary Entries Near strike price

Cite this Entry

“Strike price.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/strike%20price. Accessed 23 Nov. 2024.

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!