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Option Moneyness Explained | Options Trading for Beginners

May 4, 2023
in Trade Tube
Reading Time: 1 min read
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➥ Hypergrowth Options Strategy Course:

Option moneyness is one of the fundamental concepts that every options trader needs to learn. The good news is that it’s not too difficult!

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Options traders use option “moneyness” to describe how an option’s strike price relates to the current stock price.

More specifically, three terms are commonly used:
1. In-the-money
2. At-the-money
3. Out-of-the-money

In this video, we break down each of these three terms with examples, and also show you how to identify these options in a real option chain.

source

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