Define the Term "Moneyness" in Options Trading ⎊ Path

Define the Term “Moneyness” in Options Trading.

Moneyness describes the relationship between the underlying asset's current price and the option's strike price. Options are categorized as in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM).

It is a key factor in determining an option's intrinsic value and a portion of its extrinsic value.

Define “Moneyness” in the Context of Option Pricing

How Does the ‘Moneyness’ of an Option (ITM, ATM, OTM) Affect Its Vega?

How Does the Relationship between Strike Price and Underlying Price Define the “Moneyness” of an Option?

How Does the Delta of an Option Relate to Its ITM, ATM, or OTM Status?

Define the Three States of ‘Moneyness’ for a Call Option

Define “Moneyness” in the Context of Options Trading

What Are the Practical Implications of Trading ITM, ATM, and OTM Options?

How Does the Moneyness of an Option (ITM, ATM, OTM) Relate to the Strike Price?

Glossar

Moneyness

Concept ⎊ Moneyness describes the intrinsic value relationship between an option's strike price and the current market price of the underlying asset, categorizing options as in-the-money, at-the-money, or out-of-the-money.