Here’s how both types of contracts work. When Is a Call Option In The Money? A call option gives the contract owner the right to buy a stock at a given price. In this case, the call option is in ...

At-the-money (ATM) options have a strike price exactly equal to the current price of the underlying asset or stock.

and how a call option makes money. It indicates an expandable section or menu, or sometimes previous / next navigation options. It indicates an expandable section or menu, or sometimes previous ...

When this happens, your contract is said to be “out of the money” (OTM) — it lacks intrinsic value but still holds extrinsic value. A call option grants you the right to purchase an asset at ...