Looking for a strike price example in options trading

I trade options occasionally but still struggle with strike prices.

Can anyone share a simple example with real numbers? It would help clear things up for me and improve my understanding.

Got burned on Amazon calls last month - picked the wrong strike. Stock was at $140, I bought $150 calls for $1.50 premium.

Amazon only hit $148 by expiration, so my calls went worthless. Lost the full $150 per contract.

Should’ve grabbed $145 strikes instead. Closer to current price = better profit chances, but you pay more premium.

Apple’s trading at $150. Buy a call option with a $155 strike for $2 premium. If stock reaches $160 by expiration, profit: ($160 - $155 - $2) = $3 per share.

I bought Tesla puts at the $200 - $195 strike for $3. The stock dropped to $185 which gave me $7 per contract.

Strike price indicates where your option starts to make a profit. If Microsoft is trading at $300 and you purchase a call option at a $305 strike for a $4 premium, the stock must reach $309 or higher to yield profit.

Should it hit $315 at expiration, the gain would be $6 per share after expenses. If it stays below $309, losses will occur.

Strike price is key to understanding options. Consider Netflix priced at $400. If you buy a call option with a $410 strike and pay a $5 premium, the stock has to reach $415 just to break even. For real profit, it needs to hit $416 or above. Many forget premiums when calculating profit. The strike price indicates where options become profitable, but the stock typically needs significant movement to cover those costs.