What Does At The Money Mean?
An option is at-the-money if the strike price of the option equals the market price of the underlying security.
For example, if XYZ stock is trading at 75, then the XYZ 75 option is at-the-money. You can essentially think of this as the break-even point (when you don't take into account transaction costs).
An option is at-the-money if the strike price of the option equals the market price of the underlying security.
For example, if XYZ stock is trading at 75, then the XYZ 75 option is at-the-money. You can essentially think of this as the break-even point (when you don't take into account transaction costs).
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