Moneyness (ITM/ATM/OTM)

Also known as: itm, atm, otm, in the money, out of the money

Moneyness describes whether exercising an option now would have value: in-the-money (ITM) would be profitable, at-the-money (ATM) is roughly at the price, out-of-the-money (OTM) would be worthless. It drives an option’s price, behaviour and odds — OTM options are cheap, mostly-hope bets; ITM behave more like the stock.