• user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:ff5435a9d8284040b4784738f2ecb566' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h1>Options Moneyness</h1>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:ff5435a9d8284040b4784738f2ecb566' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:adbf458fb2f060e7b406d916507a9577' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>What is a Option Moneyness?</h2><p>You will hear the following terms when dealing with options: in the money, at the money, and out of the money. All three of these terms refer to the price of the options <a title=\"Underlying Security\" href=\"/options/underlying-security.html\">underlying security</a> relative to the <a title=\"Option Strike Price\" href=\"/options/strike-price.html\">strike price</a> of a specific option on that security.</p><h3>In the Money (ITM)</h3><p>If the underlying security value is higher than the strike price of a <a title=\"Call Option\" href=\"/options/call-options.html\">call option</a>, the option will have <a title=\"Intrinsic Value\" href=\"/options/intrinsic-value.html\">intrinsic value</a> and is said to be \"In the Money\", or ITM for short. <a title=\"Put Options\" href=\"/options/put-option.html\">Put options</a> work the opposite way; if the underlying security is valued less than the strike price of the option, the option is ITM. At expiration, the time value component of the option has completely decayed, leaving the option worth its intrinsic value.</p><p>To take this one step further, an option which is significantly in a profit position is considered Deep in the Money. Deep in the money options are significantly in the money to the point where there is very little risk of them losing enough value to take them out of the money. For example, if the strike price of a call option is $15 and the stock is worth $25, we can call this deep in the money. Deep in the money options also have a very high <a title=\"Delta\" href=\"/options/option-greeks.html\">delta</a>, close to 1, -1 for puts. High delta indicates that the option will nearly move $1 for every $1 point move in the underlying.</p><h3>Out of the Money (OTM)</h3><p>For a call option, \"Out of the Money\" indicates that an options strike price is above the current price of the underlying security. If the option is out of the money, it has no intrinsic value and is only worth the time premium. Again, the reverse can be said about put options; they are Out of the Money if the current price of the stock is above the strike price of the option.</p><p>Options in this category can also be classified as deep out of the money options as well. Deep out of the money call options have a strike price well above the current price of the security. Again, the odds of a deep out of the money option going into the money are very low and as such, the delta is very low for these options. This means that the options will not move up as fast as the stock does in the case that the stock starts to rally.</p><h3>At the Money (ATM)</h3><p>\"At the Money\" refers to the underlying security having the same value, or one that is very close to the options strike price and is also known as ATM.</p>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:adbf458fb2f060e7b406d916507a9577' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for every symbol on the Nasdaq, NYSE, and AMEX.</p><p>Use the fast forward and pause features to analyze your trading decisions with more precision.</p>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Videos</h2>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Articles</h2>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<div class=\"left\">\n <p>copyright &copy; 2011 MYSMP.com. All rights reserved.</p>\n <a href=\"/\">Home</a> • <a href=\"/advertise\">Advertise</a> • <a href=\"/sitemap\">Sitemap</a> • <a href=\"/privacy-policy\">Privacy Policy</a>\n</div>\n\n<div class=\"right\">\n <p>Designed &amp; Developed by: bxCreative.com: <a target=\"_blank\" href=\"http://bxcreative.com\">Web design</a></p>\n</div>', created = 1575630718, expire = 1575717118, headers = '', serialized = 0 WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2 class=\"pane-title\"><a href=\"/investment-articles\">Investment Articles</a></h2><h2 class=\"pane-title\"><a href=\"/premium-services\">Premium Services</a></h2> <h2 class=\"pane-title\"><a href=\"/free-offers\">Free Offers</a></h2> <h2 class=\"pane-title\"><a href=\"/video\">Videos</a></h2>', created = 1575630719, expire = 1575717119, headers = '', serialized = 0 WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>16192 Coastal Highway<br />\nLewes, Delaware 19958</p>\n', created = 1575630719, expire = 1575717119, headers = '', serialized = 0 WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<a href=\"/\"><img src=\"/sites/all/themes/bx/images/logo.png\" /></a>', created = 1575630719, expire = 1575717119, headers = '', serialized = 0 WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 109.

    Options Moneyness

    What is a Option Moneyness?

    You will hear the following terms when dealing with options: in the money, at the money, and out of the money. All three of these terms refer to the price of the options underlying security relative to the strike price of a specific option on that security.

    In the Money (ITM)

    If the underlying security value is higher than the strike price of a call option, the option will have intrinsic value and is said to be "In the Money", or ITM for short. Put options work the opposite way; if the underlying security is valued less than the strike price of the option, the option is ITM. At expiration, the time value component of the option has completely decayed, leaving the option worth its intrinsic value.

    To take this one step further, an option which is significantly in a profit position is considered Deep in the Money. Deep in the money options are significantly in the money to the point where there is very little risk of them losing enough value to take them out of the money. For example, if the strike price of a call option is $15 and the stock is worth $25, we can call this deep in the money. Deep in the money options also have a very high delta, close to 1, -1 for puts. High delta indicates that the option will nearly move $1 for every $1 point move in the underlying.

    Out of the Money (OTM)

    For a call option, "Out of the Money" indicates that an options strike price is above the current price of the underlying security. If the option is out of the money, it has no intrinsic value and is only worth the time premium. Again, the reverse can be said about put options; they are Out of the Money if the current price of the stock is above the strike price of the option.

    Options in this category can also be classified as deep out of the money options as well. Deep out of the money call options have a strike price well above the current price of the security. Again, the odds of a deep out of the money option going into the money are very low and as such, the delta is very low for these options. This means that the options will not move up as fast as the stock does in the case that the stock starts to rally.

    At the Money (ATM)

    "At the Money" refers to the underlying security having the same value, or one that is very close to the options strike price and is also known as ATM.

    Tim Ord
    Ord Oracle

    Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

    Tradingsim.com
    Day Trading Simulator

    Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

    Send this article to a friend.

    Enter multiple addresses on separate lines or separate them with commas.