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What do the terms In-the-Money (ITM), At-the-Money(ATM), Out-of-the-Money (OTM) mean when referring to Options?

In-the-Money (ITM)

An option is in-the-money when the underlying is printing below the strike price for Put Options or above the strike price for Call Options.  

At-the-Money (ATM)

An option is at-the-money when the underlying asset’s price is printing at the strike price.

 

Out-of-the-Money (OTM)

An option is out-of-the-money when the underlying is printing above the strike price for Put Options and below the strike price for Call Options.  

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