In the money. Out of the money. At the money. These three terms come up constantly in options trading, and if you're not completely clear on what they mean, this episode fixes that.
Dr. Jim Schultz breaks down moneyness from the ground up using the long side of the contract as your anchor. The rule is simple: if the option gives the long side immediate value right now, it's in the money. If it doesn't, it's out of the money. And if it's sitting right on the edge between the two, it's at the money. He then walks through calls and puts separately, showing exactly how the stock-to-strike relationship determines status, and finishes with a live demo on the Apple option chain.
Episode 7 of the Where Do I Start series.
š tastylive:
tastylive.com
š° Get Tom's pre-market analysis every morning:
tastylive.com/newsletters
š FREE Options Strategy Guide:
tinyurl.com/bp9ms763
š± Follow tastylive on X:
x.com/tastyliveshow
Chapters
0:00 What Is Moneyness...