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What is At The Money?
An option is at-the-money if the strike price of the option equals the market price of the underlying security.
For example, if ABC stock is trading at 75, then the ABC 75 option is at-the-money. You can take it that this is the break-even point (assuming you don't take into account transaction costs).
What is Out of the Money?
What is In the Money?
An option is at-the-money if the strike price of the option equals the market price of the underlying security.
For example, if ABC stock is trading at 75, then the ABC 75 option is at-the-money. You can take it that this is the break-even point (assuming you don't take into account transaction costs).
What is Out of the Money?
What is In the Money?