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.