Basics
Moneyness: ITM, ATM, and OTM
Moneyness shows whether an option already has intrinsic value.
Classification
What it means
ITM = intrinsic value exists. ATM = spot and strike are close. OTM = no intrinsic value.
The logic is mirrored for calls and puts.
Example
Spot at 100 EUR
- Call strike 90 ITM
- Call strike 100 ATM
- Call strike 110 OTM
- Put strike 110 ITM
Visual