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MONEYNESS

Position of being ITM, ATM or OTM.

Published by The Retail Trader · JUL 31, 2026 · Derivatives (F&O)

Moneyness — status of being ITM, ATM or OTM.

WHERE THIS FITS IN

This term comes under Derivatives (F&O), in the section "Structure of OPTIONS". In options, one side is a right and the other side is an obligation — this is the core of the whole game:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Option
• Call Option (CE)
• Put Option (PE)
• Strike Price
• Premium
• Option Buyer
• Option Seller / Writer
• ITM (In the Money)
• ATM (At the Money)
• OTM (Out of the Money)
• Intrinsic Value
• Time Value / Extrinsic Value

To read the entire group and all its examples in one place, see the journal "DERIVATIVES: DICTIONARY OF FUTURES & OPTIONS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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