Part 11 Trading Master Class

Strike Price

The strike price is the pre-decided price at which the option buyer can buy (call) or sell (put) the underlying asset.

Expiry Date

Options have a limited life. The expiry date is the last day the option can be exercised—after this, it becomes worthless.

Premium

The premium is the cost paid by the buyer to purchase the option. It’s determined by factors like time left to expiry, volatility, and distance from the strike price.

Leverage

Options provide high leverage—you can control large positions with a small amount of money. However, this also increases potential risk.