OptionWitOption Evaluation Board
Options glossary · where the stock sits relative to the strike: in, at, or out of the money
Moneyness describes the relationship between the stock price and the strike. A call is in the money (ITM) when the stock is above the strike, at the money (ATM) when they are roughly equal, and out of the money (OTM) when the stock is below. For puts it is reversed. An ITM option has intrinsic value; an ATM or OTM option is all extrinsic.
Moneyness drives the other Greeks. ATM options carry the most extrinsic value, the biggest vega, and the steepest end-of-life theta. Deep ITM options behave almost like the stock; far OTM options behave like cheap lottery tickets with low delta.
No. At the money means the stock is near the strike. Breakeven also accounts for the premium you paid, so it sits above the strike for a call by the premium amount.