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Published On: Thu, Apr 4th, 2013

At-the-money

This occurs when the strike price matches the price of the underlying security.

The call and put options both will be at-the-money. Such a situation means that although the at-the-money option has no intrinsic value, it may have time value.  Higher trading activity occurs often when options are at-the-money.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.