Option In, At & Out of the Money Values

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Option Contracts

option trading systems

automated systems

Trade Symbols

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- futures option premium

- in, at, out of the money

- intrinsic value, parity

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Futures Exchanges

Futures Option > The Money

In the Money, Out of the Money
& At the Money Values

An option is considered to be In-The-Money as follows:

call option: when the market value of an underlying stock or security is greater than the striking price of the call.

put option: when the market value of an underlying stock or security is less than than the striking price of the put.

An option is considered to be Out-Of-The-Money as follows:

call option: when the market value of an underlying stock or security is less than the striking price of the call.

put option: when the market value of an underlying stock or security is greater than than the striking price of the put.

While At-The-Money is used to describe when the market value of an underlying stock or security is right at the same as the striking price. (see put call parity )

In the Money, Out of the Money & At the Money Values

In the Money, Out of the Money
& At the Money Values