What Does Strike Price Mean?

By Robin Hartill, CFP – Updated Dec 5, 2025 at 12:44 AM EST

Key Points

Strike prices determine if options like calls and puts gain or lose value.
Options close to market price or "in the money" tend to be more expensive.
Choosing strike prices affects the risk and cost of options contracts.

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bull figurine next to positive trending graph — Source: Getty Images

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Bid and Ask

Bid and ask are two points of a price quote. Bid is the price investors will pay for an asset, while ask is the price they’ll sell it for.

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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Robin Hartill, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.