ITM, ATM and OTMITM, ATM aur OTM
Classify any call or put as in-the-money, at-the-money or out-of-the-money.Kisi bhi call ya put ko in-the-money, at-the-money ya out-of-the-money me classify karo.
π LessonLesson
Moneyness describes where the strike is compared with the current NIFTY level.
| Call (CE) | Put (PE) | |
|---|---|---|
| ITM (in the money) | Strike below NIFTY | Strike above NIFTY |
| ATM (at the money) | Strike nearest to NIFTY | Strike nearest to NIFTY |
| OTM (out of the money) | Strike above NIFTY | Strike below NIFTY |
Memory tip: an option is ITM if it would have value if it expired right now.
ITM options have intrinsic value and cost more; OTM options are made only of time value.
Moneyness batati hai ki strike current NIFTY level ke comparison me kahan hai.
| Call (CE) | Put (PE) | |
|---|---|---|
| ITM (in the money) | Strike NIFTY se neeche | Strike NIFTY se upar |
| ATM (at the money) | NIFTY ke sabse paas ka strike | NIFTY ke sabse paas ka strike |
| OTM (out of the money) | Strike NIFTY se upar | Strike NIFTY se neeche |
Yaad rakhne ki trick: option ITM hai agar abhi expire ho to uski value ho.
ITM options me intrinsic value hoti hai aur mehenge hote hain; OTM options sirf time value se bane hote hain.
π Practise itPractice karo
β οΈ Common mistakesCommon galtiyan
- Mixing up the rules for calls and puts.Calls aur puts ke rules mix kar dena.
- Thinking OTM options have intrinsic value.Ye sochna ki OTM options me intrinsic value hai.
- Forgetting moneyness changes as NIFTY moves.Bhoolna ki NIFTY hilne ke saath moneyness badalti hai.
β Quick quizQuick quiz
Score 2 out of 3 or more and the lesson is marked complete automatically.3 me se 2 ya zyada score karo, lesson apne aap complete mark ho jayega.
π SummarySummary
- Call ITM: strike < NIFTY; Put ITM: strike > NIFTY.Call ITM: strike < NIFTY; Put ITM: strike > NIFTY.
- ATM = strike nearest to NIFTY.ATM = NIFTY ke sabse paas ka strike.
- OTM options are pure time value.OTM options sirf time value hain.
π Sources & market rules usedSources aur market rules
Last reviewed: 2 November 2026 Β· Version 1.0 Β· Prepared by the SmaartAlgos Academy team.Last reviewed: 2 November 2026 Β· Version 1.0 Β· SmaartAlgos Academy team dwara taiyaar.
Education only. SmaartAlgos is not a SEBI-registered investment adviser or research analyst. Nothing in this lesson is a recommendation to buy or sell any security. Options trading involves substantial risk of loss. Examples are hypothetical or simulated; market rules are shown with their effective dates β always confirm the latest official circulars.
Sirf education. SmaartAlgos SEBI-registered investment adviser ya research analyst nahi hai. Is lesson me kuch bhi kisi security ko buy ya sell karne ki salah nahi hai. Options trading me bada loss ho sakta hai. Examples hypothetical ya simulated hain; market rules effective date ke saath diye gaye hain β hamesha latest official circular confirm karo.