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Option Moneyness (ITM, OTM, & ATM)

Moneyness is used to describe an option contract's intrinsic value. An option's strike price is either in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM).
Option Moneyness (ITM, OTM, & ATM)
Kirk Du Plessis
Apr 19, 2021

Options are classified into three different categories based on the relationship of the strike price to the underlying stock price. These are ITM (in-the-money), OTM (out-of-the-money), and ATM (at-the-money) options.

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