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At the money (ATM)

An option whose strike is at or very near the current stock price.

How a call option's delta changes with the underlying priceAn S-shaped curve rising from zero, passing through about a half at the strike, and flattening near one.Delta of a call option1.000.5008090110120Out of the moneyAt the moneyIn the money1.00 means it moves one-for-one with the stockdelta ≈ 0.50 at the strikeStrike 100Underlying price
Delta across the range of prices. Delta says how much a call's price moves for a one-point move in the stock. Far below the strike it is near 0 and the option barely reacts; at the strike it is about 0.50; far above it approaches 1 and tracks the stock.

ATM options have the most extrinsic-value, the highest gamma and theta, and a delta near 0.50. They are the most sensitive to changes in implied-volatility.

Straddles and strangles are built around ATM strikes because that is where the bet on movement, in either direction, is purest.

Example: with a stock at $150.30, the $150 strike is at the money. Its call and put have similar prices, each roughly half made up of the expected move.

Related: in-the-money, out-of-the-money, straddle, gamma

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