What is At the Money (ATM) option?

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• What is At the Money (ATM) Call Option?

  A call option is said to be ATM when the underlying security’s current market price is equal to the strike price of the contract.

• What is At the Money (ATM) Put Option?

  A put option is said to be ATM when the underlying security’s current market price is equal to the strike price of the contract.

• What is moneyness of an option?

  Moneyness is a term describing the relationship between the strike price of the option contract and the current market price of the underlying asset. There are three types of moneyness, In-The-Money (ITM), At-The-Money (ATM) and Out-Of-The-Money ...

• What does In The Money (ITM) options mean?

  An option is said to be In-The-Money if upon exercising it, the option buyer gets positive cash flow.

• What is Out of the Money (OTM) options?

  An option is said to be out of the money if upon exercising it, the option buyer gets a negative cash flow.