Learn about the financial implications when an option reaches its strike price, and the concepts of moneyness, intrinsic value, and why "at the money" matters for investors.

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

Options greeks are a group of variables that affect option positions. They are typically referred to as delta, gamma, theta, vega, and Rho in the options market. These variables indicate how changes ...

Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts. Learn how it uses put-call parity to uncover profit opportunities.

An option price is the value of an option contract. The option price is determined by the extrinsic and intrinsic value of the option contract. Options are contracts that allow investors to buy or ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

Q: What’s a stock option’s “strike price”? A: Imagine you work for Global Telepathic Messaging. You’re issued 1,000 employee stock options with a strike (or “exercise”) price of $10 each. A few years ...

Learn the benefits and risks of options and how to start trading options Reviewed by Samantha Silberstein Fact checked by Vikki Velasquez Options are financial contracts that give the holder the right ...