Definitions for

**"At-the-Money Option"****Related Terms:**At-the-money, At the money, Out of the money, In the money option, Out-of-the-money, In-the-money option, In the money, In-the-money, Strike price, Exercise price, Price spread, Bull spread, Out-of-the-money option, Conversion arbitrage, Bear put spread, Bear spread, Strike, Straddle, Conversion, Condor , Ratio spread, Bull put spread, Striking price, Butterfly spread, Calendar spread, Bull call spread, Vertical spread, Collar, Time spread, Bear call spread, Index arbitrage, Naked put, Underlying asset, Put, Protective put, Market correction, Naked option, What does spread mean, Long straddle, Option price, Put option, Covered call, Traded options, Covered put, Strangle, Short straddle, Lookback option, Underlying instrument, Married put, Put-call parity

Call and put option strikes that are nearest to the current price of the underlying. If the FTSE 100 is trading at 4,205 then the 4,200 calls and the 4,200 puts are deemed to be at-the-money. For the Traded Options guide click here

The option with the exercise price closest to the current price of the underlying instrument.

an option where the exercise price is the same as the market price of the underlying security

Used to describe an option whose strike price is roughly equal to the current market price of the option.

Describes the price relationship of an optionâ€™s strike price and the current market price of the underlying instrument. A call or a put option is said to be â€œat-the-moneyâ€ when the optionâ€™s strike price equals the current market price of the underlying instrument.

An option with an exercise price that is equal to the current value of the underlying asset.

An option with a strike price equal that of the current price.

the strike price is equal to the spot price of the underlying instrument.

An option with a strike price that is equal, or approximately equal, to the current market price of the underlying futures contract.

Call and put option strikes that are nearest to the current price of the underlying (stock, index etc). If Vodafone is trading at £1.22 then the £1.20 calls and £1.20 puts are deemed to be at-the-money

An option whose strike price is equal to the current market price of the underlying, either at the money spot or at-the-money-forward.

An option whose exercise price is the same as, or closest to, the current market price of the underlying share. For example, if the share price is 260p, an option with an exercise price of 260p would be precisely at-the-money. An exercise price of 261p would also be termed at-the-money. Backwardation futures market where further dated delivery months trade at a discount to the near month. Also, where a bid is higher than an offer. This is possible in a quote driven market, but will not occur in an order driven market as bids and offers will interact and trade at a matching level. Backwardation may also occur during an auction process where bids and offers are submitted prior the application of an uncrossing algorithm, which then executes orders at the uncrossing price.

When the price of the underlying security is equal to the strike price, an option is at-the-money.

When the price of the underlying security equals the strike price of the option.

An option with an exercise price equal to, or close to, the current market price of the underlying security. Français: A l'option monétaire Español: Opción a la par

An option with an exercise or strike price that is equal, or almost equal, to the current market price of the underlying security.

An option whose strike price is the same as, or closest to, the current market price of the underlying share. For example, if the share price is Rs.260, an option with a strike price of Rs.260 would be precisely at-the-money. Backwardation A futures market where further dated delivery months trade at a discount to the near month. Also, where a bid is higher than an offer.