AT THE MONEY

A circumstance wherein the strike price of an option is identical to the underlying security's price. Both put and call options will be simultaneously "at the money." For example, if ZYX stock is trading at 75, then the ZYX 75 call option and the ZYX 75 put option is both at the money. An at-the-money option doesn't have an intrinsic value, but may still possess a time value. The options trading activity will most probably become high at times when the option are at the money.