At The Money

An option with an exercise price, or strike price, significantly below (for a call option) or above (for a put option) the market price of the underlying asset. Significantly, ...

The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. ...

A situation involving the exchange of stock options that are no longer in the money for options that are currently at the money. This allows the investor to exchange worthless options ...

An option-granting practice in which options are granted at a time that precedes a positive news event. Spring loading relies on the fact that positive news typically causes the ...

A description of a derivative relating its strike price to the price of its underlying asset. Moneyness describes the intrinsic value of an option in its current state.

A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the ...

An options contract where the strike price is close to the current market price of the corresponding underlying security. An options contract is said to be near the money when the strike ...

Find out how to get a better price for your option and increase your trading profits.

This different approach to the covered-call write offers less risk and greater potential profit.

This stock/options combination helps traders take advantage of market mispricing. Find out how.