In the Money (ITM), At the Money (ATM), Out of the Money (OTM)
Depending on the strike price relative to the current market price, options are classified as:
ITM Options
Have intrinsic value.
Call: Strike < Spot
Put: Strike > Spot
ATM Options
Strike = Spot (approximately)
Mostly time value.
OTM Options
No intrinsic value; only time value.
Call: Strike > Spot
Put: Strike < Spot
OTM options are cheaper and used by beginners often, but they carry high risk.
Depending on the strike price relative to the current market price, options are classified as:
ITM Options
Have intrinsic value.
Call: Strike < Spot
Put: Strike > Spot
ATM Options
Strike = Spot (approximately)
Mostly time value.
OTM Options
No intrinsic value; only time value.
Call: Strike > Spot
Put: Strike < Spot
OTM options are cheaper and used by beginners often, but they carry high risk.
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Details:
Contact : +91 7678446896
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.