Moneyness

Moneyness is the term which indicates whether an option strike price will have exercise value at expiry. If the current price of an option's underlying asset is greater than a call option's strike price, the call option has a positive intrinsic value.

An In-The-Money option has positive intrinsic value, as in the example above. For a put option, the strike price would be above the spot price for it to be In-The-Money.

An At-The-Money option strike price is at the same level as the spot price. An At-The-Money option has no intrinsic value.

An Out-The-Money option also has no intrinsic value, as it would exercise now with no value; for a call option, an Out-The-Money strike would be above the spot price.