At the Money

At the Money

An option is at-the-money if the strike price of the option equals the market price of the underlying security.

Notes:

For example, if XYZ stock is trading at 75, then the XYZ 75 option is at-the-money. You can essentially think of this as the break-even point (when you don't take into account transaction costs).

See also: Deep in the Money, In the Money, Option, Out of the Money, Strike Price