Hero Motocorp Limited
Education

Part 6 Learn Institutional Trading

34
Types of Option Based on Moneyness
In-The-Money (ITM)

Call Option: Strike < Market Price
Put Option: Strike > Market Price

At-The-Money (ATM)

Strike = Market Price (closest)

Out-Of-The-Money (OTM)

Call Option: Strike > Market Price
Put Option: Strike < Market Price

OTM options are cheaper but riskier.

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