What Is the Term for the Range around the ATM Strike Where Options Are Most Actively Traded?
The range around the at-the-money (ATM) strike price where options are most actively traded is often referred to as the "sweet spot" or the "front-month" strikes, particularly when referring to the nearest expiration. Options near the ATM strike are the most liquid because they offer the highest leverage and time value, attracting both speculators and hedgers.