At The Money (ATM)

Search Dictionary

Definition of 'At The Money (ATM)'

At The Money (ATM) is an options term to refer to an option that has a strike price that is the same as the current price of the underlying security.

For example, if you have a call option to buy IBM at $45 and the IBM stock price has just moved up to $45, then your option is now at the money.

An at-the-money option has no intrinsic value, only time value. Only in-the-money options have intrinsic value. Options that are at-the-money or out-the-money do not have intrinsic value.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.

Emini Day Trading / Daily Notes / Forecast / Economic Events / Trading Indicators / Search / Terms and Conditions / Disclaimer / Books / Online Books / Site Map / Contact / Privacy Policy / Links / About / Day Trading Forum / Investment Calculators / Pivot Point Calculator / Market Profile Generator / Fibonacci Calculator / Mailing List / Advertise Here / Articles / Financial Terms / Brokers / Software / Holidays / Stock Split Calendar / Features / Mortgage Calculator / User Pages / Donate

Copyright © 2004-2019, MyPivots. All rights reserved.