# How Does a Change in the Strike Price Affect a Call Option's Premium? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## How Does a Change in the Strike Price Affect a Call Option’s Premium?

For a crypto call option, a lower strike price will result in a higher premium, all other factors being equal. A lower strike price means the option is either deeper in-the-money or closer to being in-the-money, increasing its intrinsic or time value.

The option provides a greater potential for profit since the purchase price is lower. This increased value and probability of being profitable translates directly into a higher price for the contract.

- [What Is the Delta of an Option and How Does It Relate to the Strike Price?](https://learn.greeks.live/path/what-is-the-delta-of-an-option-and-how-does-it-relate-to-the-strike-price/)

- [How Does Increasing Time to Expiration Affect the Extrinsic Value of an Option?](https://learn.greeks.live/path/how-does-increasing-time-to-expiration-affect-the-extrinsic-value-of-an-option/)

- [What Is the Relationship between Intrinsic Value and “In the Money” Status?](https://learn.greeks.live/path/what-is-the-relationship-between-intrinsic-value-and-in-the-money-status/)

- [What Is the Trade-off between Using a TWAP Oracle and a Real-Time Price Feed?](https://learn.greeks.live/path/what-is-the-trade-off-between-using-a-twap-oracle-and-a-real-time-price-feed/)

- [What Is the Difference between an In-the-Money and Out-of-the-Money Call Option for a DAO Seller?](https://learn.greeks.live/path/what-is-the-difference-between-an-in-the-money-and-out-of-the-money-call-option-for-a-dao-seller/)

- [What Is the Trade-off between Premium Size and Strike Price Selection?](https://learn.greeks.live/path/what-is-the-trade-off-between-premium-size-and-strike-price-selection/)

- [How Does a Change in the Strike Price Affect a Put Option’s Premium?](https://learn.greeks.live/path/how-does-a-change-in-the-strike-price-affect-a-put-options-premium/)

- [What Is the Relationship between an Option’s Intrinsic Value and Its ITM Status?](https://learn.greeks.live/path/what-is-the-relationship-between-an-options-intrinsic-value-and-its-itm-status/)

## Glossar

### [Lower Strike Price](https://learn.greeks.live/area/lower-strike-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Valuation ⎊ A lower strike price in cryptocurrency options signifies the price at which the underlying asset can be purchased, representing a potentially advantageous entry point for buyers anticipating market declines or consolidation.

### [Strike Price](https://learn.greeks.live/area/strike-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.

## Discover More

### [In a Financial Derivative, What Is the Role of the "Oracle" in Relation to the Strike Price?](https://learn.greeks.live/path/in-a-financial-derivative-what-is-the-role-of-the-oracle-in-relation-to-the-strike-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In a Financial Derivative, What Is the Role of the "Oracle" in Relation to the Strike Price?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptualization-of-Decentralized-Finance-Oracles-With-High-Frequency-Market-Data-Acquisition.webp)

The oracle feeds real-world price data to the smart contract, which is used to compare against the strike price for settlement.

### [How Does the Concept of 'Implied Volatility' Affect the Premium of a Crypto Option?](https://learn.greeks.live/path/how-does-the-concept-of-implied-volatility-affect-the-premium-of-a-crypto-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Concept of 'Implied Volatility' Affect the Premium of a Crypto Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Dual-Compact-Disc-Obfuscation-Modeling-Implying-Hedged-Digital-Asset-Volatility-Surface-Compression.webp)

Implied volatility is the market's expectation of future price movement; higher IV leads to a higher option premium.

### [How Does the Exercise Style Affect the Option Premium?](https://learn.greeks.live/path/how-does-the-exercise-style-affect-the-option-premium/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Exercise Style Affect the Option Premium?](https://learn.greeks.live/wp-content/uploads/2025/10/Intertwined-Quantum-Digital-Asset-Hedging-Mechanism-Through-Option-Strike-Price-Boundaries.webp)

American options have a higher premium due to the added value of the right to exercise at any time before expiration.

### [How Does Increased Volatility of the Underlying Crypto Affect the Option Premium?](https://learn.greeks.live/path/how-does-increased-volatility-of-the-underlying-crypto-affect-the-option-premium/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Increased Volatility of the Underlying Crypto Affect the Option Premium?](https://learn.greeks.live/wp-content/uploads/2025/10/Microstructure-Revelation-of-Decentralized-Exchange-Automated-Market-Maker-Oracle-Mechanism-Architecture.webp)

Increased volatility raises the premium for both calls and puts because it increases the probability of a profitable price movement.

### [How Does the Strike Price Affect the Option Premium?](https://learn.greeks.live/path/how-does-the-strike-price-affect-the-option-premium/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Strike Price Affect the Option Premium?](https://learn.greeks.live/wp-content/uploads/2025/10/High-Fidelity-Digital-Asset-Volatility-Surface-Modeling-for-DeFi-Option-Pricing-Mechanisms.webp)

ITM options (favorable strike price) have higher premiums due to greater intrinsic value; OTM options have lower premiums.

### [How Does a Change in the Risk-Free Rate Affect the Theoretical Price of a Long-Dated Crypto Option?](https://learn.greeks.live/path/how-does-a-change-in-the-risk-free-rate-affect-the-theoretical-price-of-a-long-dated-crypto-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Change in the Risk-Free Rate Affect the Theoretical Price of a Long-Dated Crypto Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Geometric-DeFi-Volatility-Instrument-Representing-Perpetual-Swaps-Structure.webp)

A higher risk-free rate increases call prices and decreases put prices, with a greater effect on long-dated options.

### [How Does the "Moneyness" of an Option Affect Its Premium Value?](https://learn.greeks.live/path/how-does-the-moneyness-of-an-option-affect-its-premium-value/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the "Moneyness" of an Option Affect Its Premium Value?](https://learn.greeks.live/wp-content/uploads/2025/10/Perfectly-Balanced-Leveraged-Token-Positioning-Demonstrating-Delta-Hedging-Equilibrium-In-Illiquid-Crypto-Markets.webp)

ITM options have intrinsic value and higher premiums; ATM and OTM options have only extrinsic value, leading to lower premiums.

### [What Is the Significance of the "Strike Price" in an Option Contract?](https://learn.greeks.live/path/what-is-the-significance-of-the-strike-price-in-an-option-contract/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Significance of the "Strike Price" in an Option Contract?](https://learn.greeks.live/wp-content/uploads/2025/10/Teardrop-Encapsulated-Algorithmic-Trading-Module-Representing-Decentralized-Finance-Option-Settlement-Mechanisms.webp)

The strike price is the fixed price at which the underlying asset can be traded upon exercise, determining the option's intrinsic value.

### [How Can Path-Dependent Volatility, as Opposed to Simple Price Change, Affect the Actual Realized Impermanent Loss?](https://learn.greeks.live/path/how-can-path-dependent-volatility-as-opposed-to-simple-price-change-affect-the-actual-realized-impermanent-loss/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can Path-Dependent Volatility, as Opposed to Simple Price Change, Affect the Actual Realized Impermanent Loss?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Depiction-of-Exotic-Options-Payoff-Structure-Through-Planetary-Probe-Simulation.webp)

The price path matters: high volatility can generate enough fees to offset impermanent loss, even if the final price diverges.

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**Original URL:** https://learn.greeks.live/learn/how-does-a-change-in-the-strike-price-affect-a-call-options-premium/
