At-the-money


Also found in: Acronyms.

At-the-money

An option is at the money if the strike price of the option is equal to the market price of the underlying security. For example, if xyz stock is trading at 54, then the xyz 54 option is at the money.

At the Money

An option contract with a strike price exactly equal to the price of the underlying asset. In this situation, the option contract has no intrinsic value. However, it can easily develop an intrinsic value if the option becomes in-the-money. At-the-money options are extremely volatile because they can become in-the-money or out-of-the-money quickly.

at-the-money

Of or relating to a call or a put option that has a strike price equal to the price of the underlying asset.

At-the-money.

At-the-money is another way of saying at the current price. Options whose exercise price is the same or almost the same as the current market price of the underlying stock or futures contract are considered at-the-money.

References in periodicals archive ?
Under certain circumstances (see Annex B) the prices for at-the-money implied volatility and strangles and risk-reversals, respectively, will describe the entire probability distribution for future exchange rates.
An at-the-money option with similar terms would have been valued for disclosure purposes at 25.
Figure 4 depicts how gamma behaves for in-the-money, at-the-money and out-of-the-money commitments.
If this premise is supported, options closest to at-the-money should show the strongest negative performance following exercise, while those deepest in-the-money should show the weakest negative or possibly positive performance.
September options contracts account for less metal that the more-active October options strip, yet open interest in $1,650 calls at 5,284 lots is equivalent to 10 percent of total open interest in at-the-money strikes between $1,600 and $1,750.
out-of-the-money put options, but at-the-money put options, which would
Employers were actually issuing in-the-money options while leading investors, regulators, and the IRS to believe that the options were issued out-of-the money (or "underwater") or at-the-money.
For example, when compared with options, restricted stock usually results in less dilution of existing shareholders' ownership, since a restricted share--effectively an option with a zero exercise price--is worth more than an at-the-money option, meaning the company needs to grant fewer shares to provide the same level of compensation.
If she is then awarded at-the-money options dated "as of" June 1, 1999, when Acme's stock price was $35, Amanda has a cushion of $5 of intrinsic value per share.
If a business needs to short hedge with futures, an alternative hedge is proposed by brokers called a synthetic futures hedge that involves the simultaneous buying of a put and the selling of a call at the same at-the-money strike prices.
The Service presented no evidence that unrelated parties would, pursuant to the fair-value method (FVM), make a cost-sharing allocation of at-the-money options or employee-stock-purchase-plan purchase rights.
The remaining chapters in Part III of Pay Without Performance discuss various aspects of equity-based compensation that Bebchuk and Fried feel further demonstrate managerial power over the pay-setting process: the widespread use of at-the-money options, option repricing, reload options, restricted stock in lieu of options, and executives' ability to unwind their equity positions.