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Define the Moneyness of an Option.

Moneyness refers to the relationship between the underlying asset's current price and the option's strike price. It determines whether an option is in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM).

Moneyness dictates the intrinsic value.

What Is Delta and How Does It Relate to an Option Being ITM, OTM, or At-The-Money (ATM)?
What Is the Difference between an ITM, OTM, and ATM Call Option?
How Does an ATM Option Become ITM or OTM?
Explain the Concept of “Moneyness” (ITM, ATM, OTM)