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

Moneyness describes the relationship between the underlying asset's current price and the option's strike price. An option is "In-the-Money" (ITM) if exercising it immediately would yield a profit.

It is "Out-of-the-Money" (OTM) if exercising it would yield a loss. "At-the-Money" (ATM) means the strike price equals the current price.