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What Is the Term for an Option Where the Strike Price Equals the Underlying Price?

An option with a strike price equal to the underlying price is called "at-the-money" (ATM).
Greeks.Live16.11.25

What Is the Term for an Option Where the Strike Price Equals the Underlying Price?

The term for an option where the strike price is exactly equal to the underlying asset's current price is "at-the-money" (ATM). An ATM option has zero intrinsic value, and its entire premium is composed of time value.

These options are the most sensitive to changes in volatility and time decay.

What Is the Concept of “Moneyness” (In-the-Money, Out-of-the-Money) for a Call Option?
What Is the Term for a Call Option When the Underlying Price Equals the Strike Price?
What Is the Term for the IV of an Option That Is Exactly At-the-Money?
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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