At the Money (abbreviation: ATM) – any option contract where the option strike is trading very close to the current price of the underlying. For example if option contract has a $50 strike and the underlying is trading at say $50.32 or $49.67 that would typically be considered ATM. The ATM option contract would typically have mostly only extrinsic value (time or volatility), with only no (or just a small amount) of intrinsic value.

It can also refer to option spreads, for example an at the money (ATM) bear call spread would mean that the lower call strike is slightly ITM and the higher call strike is slightly OTM.

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