Sun. Aug 1st, 2021

Options Funda

All about options and its strategies

At-The-Money Option (ATM)

1 min read

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.

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