What Is the Concept of “Moneyness” (In-the-Money, Out-of-the-Money) for a Call Option?

Moneyness describes the relationship between the underlying asset's current price and the option's strike price. A call option is In-the-Money (ITM) if the asset price is above the strike price.

It is Out-of-the-Money (OTM) if the asset price is below the strike price. At-the-Money (ATM) means the prices are equal or very close.