The strike price has an enormous bearing on how your option trade will play out. You'll have to calculate several different scenarios to choose it. They involve using possible prices at option ...

Discover how protective puts safeguard investments with options contracts, providing downside protection and hedging against losses while allowing for potential gains.

But options trading can be risky and potentially expose you to higher losses. Minimizing losses while maximizing profits with options is tied to the strike price and knowing when to buy or sell.