Strike price vs. exercise price: What’s the difference?
These two terms are interchangeable when it comes to options trading.
Former Bankrate senior investing editor Erin Kennedy has spent over a dozen years editing and publishing in the financial media space. Her longtime goal has been to help educate people on topics in finance that can seem uninteresting or too complex, and she embraces a reader-centered mindset.
Erin has worked on stock recommendations, newsletters, articles, reports and commentaries, in addition to managing several sites. She likes investing in relatively boring equities and ETFs, with the occasional spicy stock thrown in for good measure.
Having been an investor for about 15 years, Erin has accrued a fair amount of experience when it comes to what to do (and what not to do!) when buying and selling stocks. She considers her biggest failures not the investments that went to zero — or close enough — but selling outperforming stocks too soon, feeling content with a nice profit instead of considering their potential for future gains. (Ask her about Waste Management sometime.)
Erin is also a Warren Buffett superfan, and likes to follow the comings and goings in Berkshire Hathaway’s stock portfolio.
Always be investing.
— Erin Kennedy
These two terms are interchangeable when it comes to options trading.
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