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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
Because, according to Huffman and the company SEC filing, the board canceled his existing stock awards and then granted him a new equity package in late 2023 that included stock, as well as stock options at various escalating strike prices.
—Byorianna Rosa Royle, Fortune, 19 Mar. 2024
One such case would be if your option strike prices are far above the price at which the company is expected to IPO.
—Scott Chou, Fortune, 2 Feb. 2024
And options are worthless unless the company’s share price increases above the grant-date strike price.
—Mike Freeman, San Diego Union-Tribune, 25 Aug. 2022
For example, put options tied to Tesla with a $225 strike price—or the level at which the trader has the right to sell the shares—changed hands for $3.38 in trading this week, according to FactSet, up from around $1.76 Friday.
—WSJ, 9 Aug. 2023
For every $100 in notional — the value an options contract covers — investors now pay only $3.50 for an S&P 500 put option expiring a year from now with a strike price 5% below current levels, data compiled by Bank of America show.
—Elena Popina, Fortune, 30 July 2023
The $8 strike price also equates roughly to how some Wall Street analysts have valued the Mountain Valley Pipeline for Equitrans.
—Austin Weinstein, Fortune, 4 June 2023
Cohen, the founder of online pet goods retailer Chewy and the chairman of GameStop bought a 10% stake in Bed Bath & Beyond in March this year and also snapped up call options on 1.67 million shares with a strike price ranging from $60 to $80 expiring in January 2023.
—Fortune, 17 Aug. 2022
Joe exercises his put option and sells his shares at his strike price of $50.
—Q.ai - Powering A Personal Wealth Movement, Forbes, 5 Feb. 2023
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'strike price.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Word History
First Known Use
1972, in the meaning defined above
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 10 Jun. 2024.
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