Define “In-the-Money,” “At-the-Money,” and “Out-of-the-Money” for a Written Call Option.
A call option is In-the-Money (ITM) when the underlying price is above the strike price, meaning the writer is currently losing money (unrealized loss). It is At-the-Money (ATM) when the underlying price equals the strike price.
It is Out-of-the-Money (OTM) when the underlying price is below the strike price, meaning the writer is profitable (unrealized gain).
