Glossary › at the money
Trading glossary · advanced
at the money
A price ticket whose set price is about the same as today's price, so it is not yet a winner or a loser.
The fuller meaning
An option whose strike is at or very near the underlying's current price. It has little or no intrinsic value, so its premium is almost all time value, which shrinks as expiry approaches; an at-the-money call has a delta near 0.5.
at the money, also called at-the-money.
Related words
backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger · exercise