What Is Meant by an Option Being 'In-the-Money' (ITM), 'At-the-Money' (ATM), or 'Out-of-the-Money' (OTM)? ▴ Learn

What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?

An option's 'moneyness' describes its relationship between the strike price and the current price of the underlying asset. A call option is ITM if the spot price is above the strike price.

A put option is ITM if the spot price is below the strike price. ATM means the spot and strike prices are equal.

OTM means the option would not be profitable to exercise immediately.

How Does an ATM Option Become ITM or OTM?

Define the Conditions for a Put Option to Be Considered Out-The-Money (OTM)

Explain the Concept of “Moneyness” (ITM, ATM, OTM)

Define “Out-of-the-Money” (OTM) for a Put Option

What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?

What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?

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