Part 11 Tradig Master Class

Key Terminologies

Strike Price: The fixed price at which the asset can be bought or sold.

Premium: The cost paid by the buyer to the seller (writer) of the option for the rights granted by the contract.

Expiration Date: The date on which the option contract expires.

In-the-Money (ITM): When exercising the option would result in a profit.

Out-of-the-Money (OTM): When exercising the option would result in a loss.