Strike (strike price)
Strike (strike price) or exercise price is the price set by the specification of an option contract, at which the option buyer can buy or sell (depending on the type of option) the underlying asset under the current option, and the option seller is obliged to sell or buy the corresponding amount of the underlying asset.
Based on the differences between the strike and the market price, an option can be ITM ("in the money"), ATM ("at the money"), OTM ("out of the money").
Example: if the spot price of the underlying asset is 70, the option on that underlying asset with a strike of 80 would be ITM (“in the money”).
When the option expires, the value of the out-of-the-money option will be zero, while the value of the in-the-money option will be equal to the difference between the strike (the exercise price) and the price of the underlying asset. This is the so-called "intrinsic value" of the option.
Central strike (or ATM Strike) is the option strike closest to the current price of the underlying asset.
On the Cbonds website, option strikes are displayed in the contract page’s header and in