The strike price is the price at which you can buy the stock. If your strike price is $10 and the stock is trading at $50, your “spread” is $40 per share. You only make money on the value *above* that $10 mark.
The strike price is the price at which you can buy the stock. If your strike price is $10 and the stock is trading at $50, your “spread” is $40 per share. You only make money on the value *above* that $10 mark.