Condition which informs shareholders whether or not it is wise to exercise their stock options. Three common forms of moneyness include "in the money," "out of the money" and "at the money". When an investor is said to be "in the money," they stand to achieve gains by exercising the option. When an investor is said to be "out of the money," they stand to suffer profit losses. If an investor is said to be "at the money," they stand to break even if the option is exercised.
Related information about moneyness:
- Moneyness - Wikipedia, the free encyclopedia
In finance, moneyness is a measure of the degree to which a derivative is likely to have positive monetary value at its expiration, in the risk-neutral measure.
- Moneyness Definition | Investopedia
A description of a derivative relating its strike price to the price of its underlying asset. Moneyness describes the intrinsic value of an option in its current state.
- What Is Option Moneyness?
Oct 2, 2008 ... Get the basics under your cap before you get into the game.
- Moneyness Explained | The Options & Futures Guide
Moneyness is a term describing the relationship between the strike price of an option and the current trading price of its underlying security. In options trading ...
- Options Moneyness by OptionTradingpedia.com
Probably The Most Comprehensive Explanation Of Options Moneyness In The World!
- 6 Quick Examples To Mastering Option Moneyness (ITM, OTM ...
The moneyness on a single option contract is a fundamental concept to master when trading. I'd even say it's a requirement before you put real money into the.
- moneyness - Wiktionary
Moneyness · Wikipedia moneyness (usually uncountable; plural moneynesses) ... As an option's expiration date approaches only its moneyness has value.
- Moneyness
Explains moneyness as it applies to the trading of options, including in-the- money, out-of-the money, and variations such as at-the-money using examples.