OptionScout
  • Tools
  • Strategies
  • Articles
  • Glossary
  • Tools
  • Strategies
  • Articles
  • Glossary
Glossary
ABCDEGIOPRSTV
A
  • Assignment
  • At-the-money (ATM)
B
  • Break-even
C
  • Covered call
D
  • Days to expiry (DTE)
  • Delta (Δ)
E
  • Exercise
  • Extrinsic value
G
  • Gamma (Γ)
I
  • Implied volatility (IV)
  • In-the-money (ITM)
  • Intrinsic value
  • IV rank
O
  • Open interest
  • Out-of-the-money (OTM)
P
  • Premium
R
  • Rho (ρ)
S
  • Strike price
T
  • Theta (Θ)
V
  • Vega (ν)
  • Volume
basics

At-the-money (ATM)

An option whose strike is right at the current stock price.

An option is at-the-money when its strike price equals (or is very close to) the underlying stock's current price. ATM options have the most time value and the fastest theta decay because the market is uncertain whether they'll expire in- or out-of-the-money.

Related

In-the-money (ITM)

An option that has intrinsic value.

Out-of-the-money (OTM)

An option with zero intrinsic value — all extrinsic.

OptionScout

Options learning and resources for retail investors.

Tools
  • Covered call
  • Iron condor
  • Cash-secured put
  • Credit spread
  • Wheel
  • Break-even
All calculators →
Learn
  • Strategies
  • Articles
  • Glossary
© 2026 OptionScout. All rights reserved.Educational content only — not investment advice.