At The Money

‘At the money’ is a term applied in options trading to denote the degree of profitability of an option.

In options trading, if a trader buys/sells a call or put option at a strike price and during the contract period, the spot price of the underlying security remains the same as the strike price, the status of the trader is said to be at the money.


Say, we purchased a call option on an equity share at a strike price of Rs 100 with a three months tenure, during which the spot price of the equity share remain at Rs 100, not more or less. We would then be at the money(ATM) in our call or put option.

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In options trading, profitability of an option is called moneyness. When the profitability of an option (or moneyness) has a positive value (is profitable) then it is called in the money, if zero at the money, if a negative value then out of the money.