# Total price of (AAPL option strike price + option cost) decreases with strike price. Why?

I'm looking at apple options and found this strange pricing in the options table. It seems like if you buy a lower strike price your total cost for buying the stock and options is much less. Why is this?

``````Bid     Ask     Strike Price    Calculated cost of shares

19.20   19.45   115.00          = ~19.3 + 115.0 = 134.3

9.30    9.35    130.00          = ~9.3 + 130    = 139.3
``````
• You missed the volatility of the stock, check that you will get your answer. I am assuming the time frame is same. I am assuming, seems quite plausible, you got this from a textbok and not from the market. – DumbCoder Jul 20 '15 at 16:45
• This is real December 18, 2015 AAPL options. – user3413723 Jul 20 '15 at 16:51
• Pricing looks about right for the current 2016 Jan strikes. With AAPL @\$130+ one strike is nearly all in the money vs the other, just at the money. A 140 call will look like a higher total cost \$140+\$5.60= \$145.60. (I was 1 month off) – JTP - Apologise to Monica Jul 20 '15 at 16:51
• @MarkPlotnick it makes sense to me that the price for an option at a lower strike price is higher than the price of one with a higher strike price. But what doesn't make sense to me is why the difference in option prices is only \$10, while the difference in strike price is \$15. – user3413723 Jul 26 '15 at 9:13
• Thanks, I misunderstood the question. The discrepancy is due to the probability model used to price the options. The difference in prices will vary, and at the monent of expiration, if they're both in the money at that time, will indeed be \$15. I will write up an answer for this or find an existing answer that explains it. – Mark Plotnick Jul 26 '15 at 9:55