Glossary

Moneyness (ITM, ATM, OTM)

By Rohan Fernandes, Founder · Updated 2026-08-22 · Educational reference, not investment advice

Moneyness locates a strike relative to the stock: in the money (intrinsic value now), at the money (strike near spot), out of the money (all time value). Almost every options property (delta, gamma, decay, assignment odds) organizes along this axis.

At the money is where gamma and time decay peak and where delta sits near 0.50. Deep in the money behaves like stock; far out of the money behaves like a lottery ticket. Premium-selling disciplines live in the out-of-the-money band (short strikes at 0.15-0.30 delta), while stock-replacement positions live in the money around 0.70-0.75 delta; the band is the strategy.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.