In options trading, the strike price  is the fixed price at which you can buy (call) or sell (put) the underlying asset. When the stock price equals the strike price, the option is at-the-money (ATM) . This is a key moment because ATM options have zero intrinsic value —no built-in profit from exercising. Understanding moneyness  helps explain this: In-the-money (ITM) : Has intrinsic value (call: stock > strike; put: stock < strike). At-the-money (ATM) : Stock price = strike p

An options contract is a versatile financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset—such as a stock, index, ETF, or currency—at a predetermined price (the strike price) within a specific time frame (until the expiration date).