DaytradeTeam Brainzzzz
Trading Tips and Strategies from Traders at DaytradeTeam
Tuesday, August 30, 2005
In the Money, At The Money and Out of the Money
In the Money:
This means that the option has "intrinsic value". For a call option, it means that the stock price is above the strike price of the option. For a put option, it means that the stock price is below the strike price of the option.
At the Money:
This is the term that is used to describe the strike price that is nearest to the current stock price. At the money options typically have a delta of 0.5.
Out of the money:
Options that are out of the money have no intrinsic value. For a call option, it means that the stock price is below the strike price. For a put option, it means that the stock price is above the strike price of the option.
Options trading systems will often combine in the money and out of the money options.
This means that the option has "intrinsic value". For a call option, it means that the stock price is above the strike price of the option. For a put option, it means that the stock price is below the strike price of the option.
At the Money:
This is the term that is used to describe the strike price that is nearest to the current stock price. At the money options typically have a delta of 0.5.
Out of the money:
Options that are out of the money have no intrinsic value. For a call option, it means that the stock price is below the strike price. For a put option, it means that the stock price is above the strike price of the option.
Options trading systems will often combine in the money and out of the money options.
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