The moneyness of an option contract is a classification method wherein each option (strike) gets classified as either – In the Money (ITM), At the Money (ATM), or Out of the Money (OTM) option.
In the Money Call option : An In-the-Money call option refers to a call option whose strike price is less than the spot price of the underlying assets.
AT the Money Call option : An At-the-Money call option refers to a call option whose strike price is approximately equal to spot price of the underlying assets.
Out of the Money Call option : An Out-of-the-Money call option refers to a call option whose strike price is higher than the spot price of the underlying assets.
In the Money Put option : An In-the-Money Put option refers to a put option whose strike price is higher than the spot price of the underlying assets.
AT the Money Put option : An At-the-Money Put option refers to a call option whose strike price is approximately equal to spot price of the underlying assets.
Out of the Money Put option : An Out-of-the-Money Put option refers to a call option whose strike price is less than the spot price of the underlying assets.
