What is At The Money Options? At the money (ATM) is a situation where an option's strike price is identical to the current market price of the underlying security. An ATM option has a delta of approximately ±0.50, positive if it is a call, negative for a put. For options on very high volatility assets, this delta can be materially different (higher for calls and lower for puts) due to the log normal distribution and the fact that assets can’t go negative but the upside is unlimited Both call and put options can be simultaneously ATM. For example, if XYZ stock is trading at $75, then the XYZ 75 call option is ATM and so is the XYZ 75 put option. ATM and OTM (out the money) options have no intrinsic value, but will still have extrinsic or time value prior to expiration, and may be contrasted with in the money (ITM) options. Related articles What is the Black-Scholes Model? What is a Breakeven Price? What are Calendar Spreads? What is a Gamma Profile? What is the American or European Expiry?