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Moneyness (ITM, ATM, OTM)
Options
Moneyness describes where an option's strike sits relative to the stock price.
A call is in the money (ITM) when the stock is above the strike, out of the money (OTM) when it is below, and at the money (ATM) when the two are roughly equal; for a put, in and out are reversed. An out-of-the-money option's premium consists entirely of time value.
Example
With the stock at $100, a $90 strike call is in the money (intrinsic value $10), a $110 call is out of the money and a $100 call is at the money. At the same prices, a $110 put is in the money.
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