At-The-Money Option (ATM)
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An at-the-money (ATM) option is an option that would lead to zero cashflow if it were exercised immediately. An Option on the index is at-the-money when the current index equals the strike price (i.e. spot price = strike price).
ATM strikes have the most premium and is high in volume thus low bid ask spread.
ATM strikes does not have any intrinsic value in their premiums.
