How Does the Strike Price Affect the Option Premium? ⎊ Path

How Does the Strike Price Affect the Option Premium?

The strike price significantly affects the option premium. Options that are already 'in the money' (ITM) relative to the current market price will have a higher intrinsic value and thus a higher premium.

Options that are 'out of the money' (OTM) have a lower premium because they have no intrinsic value and a lower probability of becoming profitable.

How Does the Moneyness (ITM, OTM, ATM) of an Option Affect Its Bid-Offer Spread?

Does Theta Decay Affect ITM Options Differently than OTM Options?

Define In-The-Money (ITM) for Both a Call and a Put Option

What Is the Difference between an ITM, OTM, and ATM Call Option?

What Is the Trade-off between Premium Size and Strike Price Selection?

How Does ‘Time Decay’ (Theta) Affect the Value of an ITM Option Compared to an OTM Option?

Why Does an ITM Option Have a Higher Premium Compared to an OTM Option with the Same Expiration?

How Does ‘Moneyness’ Relate to an Option’s Intrinsic Value?

Glossar

Strike Price

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.