How Is the Strike Price Conceptually Similar to a “Limit Order” in Trading?

The strike price is similar to a limit order because both specify a price at which a transaction is intended to occur. A limit order is an instruction to buy or sell an asset at a specific price or better.

The strike price is the price at which the option can be executed. The key difference is that a limit order is an immediate instruction, while the strike price is a potential future transaction price that the option holder has the right to initiate.