Skip to main content

What Is the Term for the Price Difference between the Underlying and the Strike?

The term for the price difference between the underlying asset's current price and the option's strike price is called the "moneyness" or sometimes the "amount in-the-money" or "amount out-of-the-money." This difference is key to determining intrinsic value.

What Is the Term for an Option Where the Strike Price Equals the Underlying Price?
How Does the Moneyness of an Option (ITM, ATM, OTM) Relate to the Strike Price?
How Is Moneyness Different for Call Options versus Put Options?
What Is the Term for a Call Option Where the Strike Price Equals the Current Market Price?