At The Money
An option is at-the-money if the strike price of the option equals the market price of the underlying security. Investopedia Says:
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). Related Terms:
Deep in the Money
In the Money
Moneyness
Option
Out of the Money
Reprice
Spring Loading
Strike Price |