At The Money
Definition of 'At The Money'A situation where an option's strike price is identical to the price of the underlying security. Both call and put options will be simultaneously "at the money." For example, if XYZ stock is trading at 75, then the XYZ 75 call option is at the money and so is the XYZ 75 put option. An at-the-money option has no intrinsic value, but may still have time value. Options trading activity tends to be high when options are at the money. |
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Investopedia explains 'At The Money'"At the money" is one of three terms used to describe the relationship between an option's strike price and the underlying security's price, or option "moneyness." The other two are "in the money," meaning the option has some intrinsic value, and "out of the money," meaning the option has no intrinsic value. Also, sometimes the term "near the money" is used to describe an option that is within 50 cents of being at the money. |
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