Define “At-the-Money” (ATM) for a Put Option.
A put option is considered "at-the-money" (ATM) when its strike price is approximately equal to the current price of the underlying asset. An ATM put option has an intrinsic value of zero.
It has the highest time value relative to its premium compared to ITM or OTM options.
Glossar
Atm Option
Strike ⎊ An At-the-Money (ATM) option is characterized by its strike price being precisely equal, or extremely close, to the current market price of the underlying cryptocurrency asset.
Atm Put Option
Option ⎊ An ATM put option, within cryptocurrency derivatives, represents a contract granting the holder the right, but not the obligation, to sell an underlying cryptocurrency at a predetermined strike price on or before a specified expiration date.
Highest Time Value
Decay ⎊ Highest Time Value, within cryptocurrency options and derivatives, reflects the exponential erosion of an option’s extrinsic value as expiration nears, driven by the diminishing probability of favorable price movement.