What Is the Role of the Strike Price in a Crypto Option Contract?

The strike price, or exercise price, is the fixed price at which the option holder can buy or sell the underlying cryptocurrency. This price is set when the contract is initiated.

It is the critical reference point for determining if an option is profitable (in-the-money) at expiration. The difference between the strike price and the market price dictates the option's intrinsic value.

A lower strike is better for a call buyer, and a higher strike is better for a put buyer.