Strike price
The strike price is the price an option lets you buy or sell the stock at. A 105 call lets you buy at 105, whatever the stock does.
In depth
Every contract names a strike, and it never moves. A call gains value as the stock rises above its strike. A put gains as the stock falls below its strike. That fixed price is what you need price to get past.
Say the stock is at 100. A 105 call needs a five dollar move before it is worth anything at expiry. So it is cheap. A 95 call already holds five dollars of real value. It costs more and tracks the stock more closely. Cheap and likely are different things. Pick the strike your chart says price can reach.
Why it matters
The strike decides how far the stock has to travel before you are paid. Buy a distant strike because it costs little. You can then be right on direction and still lose the lot. The move has to arrive, and it has to arrive before expiry.
Your option trades import from Schwab and IBKR on their own, so the record builds itself. Tag the far strikes and the close ones, then compare them in the By tag table. Automatic tags also mark contracts that expired worthless.
Frequently asked questions
No. It is fixed for the life of that contract. Buy a different contract if you want a different strike.
The one price can reach on your chart before expiry. Cheap strikes are cheap because that move is unlikely.
Keep your Strike price trades on the record in TraderLog
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