Moneyness the strike relative to the spot level

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Moneyness: the strike relative to the spot level Terminology In the Money (ITM) At the Money (ATM) Out the Money (OTM) Call Option Underlying Price > Strike Underlying Price = Strike Underlying Price < Strike Put Option Underlying Price < Strike Underlying Price = Strike Underlying Price > Strike
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Intrinsic Value vs. Time Value In the money calls and puts Have intrinsic value May have time value At the money calls and puts No intrinsic value All time value Out of the money calls and puts No intrinsic value All time Value
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