Moneyness
Where an option's strike sits relative to the current price of the underlying.
Definition
Moneyness describes the relationship between an option's strike price and the current spot price of the underlying. It tells you whether exercising the option would currently produce a payoff. Options are grouped into three buckets: in-the-money (ITM), at-the-money (ATM) and out-of-the-money (OTM). For a call, ITM means the spot is above the strike; for a put, ITM means the spot is below the strike. ATM means the strike is roughly equal to the spot, and OTM is the opposite of ITM.
Why it matters
Moneyness drives an option's price, sensitivity and probability of expiring worthwhile. ITM options carry intrinsic value and behave more like the underlying; ATM options have the most time value and the fastest theta decay; OTM options are cheap lottery-style bets that need a real move to pay off. Knowing the moneyness of a strike helps you judge risk, reward and how the premium will react as the underlying moves.
Example
Suppose NIFTY is trading at 22,000. A 21,800 call is ITM (spot is above the strike), a 22,000 call is ATM, and a 22,300 call is OTM. The same logic flips for puts: a 22,300 put would be ITM while a 21,800 put would be OTM.
See it live
Open the TradePulse option chain to see ITM, ATM and OTM strikes colour-coded around the live spot.