How Does the Concept of "Moneyness" Relate to OTM, ATM, and ITM? ⎊ Path

How Does the Concept of “Moneyness” Relate to OTM, ATM, and ITM?

Moneyness describes the relationship between an option's strike price and the underlying asset's current market price. In-the-Money (ITM) options have intrinsic value.

At-the-Money (ATM) options have the strike equal to the underlying price. Out-of-the-Money (OTM) options have no intrinsic value.

Moneyness is a primary factor determining an option's Delta and its overall premium.

In Options, What Does “Moneyness” (In-the-Money, Out-of-the-Money) Signify?

How Does the Strike Price Relate to the Moneyness of an Option?

Define the Term “Moneyness” in Options Trading

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

Define “Moneyness” in the Context of Option Pricing

Define ‘Moneyness’ in the Context of Options Trading and Its Three Classifications

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

In Options Trading, What Does “Moneyness” Signify and How Does It Relate to Intrinsic Value?

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.