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Definition of 'At The Money'
An option is at-the-money if the strike price of the option equals the market price of the underlying security.
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Investopedia explains 'At The Money'
For example, if XYZ stock is trading at 75, then the XYZ 75 option is at-the-money. You can essentially think of this as the break-even point (when you don't take into account transaction costs).
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