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Topic
Moneyness
4 guides in Finabase Learn
- In the money (ITM) A call with a strike below the underlying price, or a put with a strike above it; the option has intrinsic value.
- Option moneyness: in, at and out of the money explained How to tell whether a call or put is in, at or out of the money, and how to split any option premium into intrinsic value and time value, with worked tables.
- Out of the money (OTM) An option with no intrinsic value: a call whose strike is above the stock price, or a put whose strike is below it.
- Strike price The fixed price at which an option holder can buy (call) or sell (put) the underlying asset, set when the contract is created.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.