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.

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced ...

When it comes to options, strike prices are key in determining the value of an option and the potential for profit or loss. The strike price is the price at which the underlying asset, such as a stock ...

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 ...

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 ...

Options are contracts allowing buyers to purchase or sell stock at a set price by a certain date. The value of options is tied to their associated stock's price relative to the strike price of the ...

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 ...

If you’ve ever looked at the options chain, you probably noticed how complicated it seems. These numbers and letters make options look more like an algebra class than a financial product. However, ...