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What Is the Relationship between Strike Price and Option Premium?

Lower strike means higher call premium; higher strike means higher put premium.
Greeks.Live22.11.25

What Is the Relationship between Strike Price and Option Premium?

Generally, for call options, a lower strike price results in a higher option premium, as it offers a greater chance of being ITM and a higher intrinsic value. For put options, a higher strike price results in a higher premium.

The strike price is a primary determinant of the option's intrinsic value component.

What Is the Put-Call Parity Relationship in Terms of Delta?
What Is the Concept of “Put-Call Parity”?
What Is the ‘Put-Call Parity’ Theorem in Options Pricing?
How Does the Strike Price of an Option Influence Its Price in the Black-Scholes Model?

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