What is Moneyness (ITM / ATM / OTM)?
What Is Moneyness in Options? ITM, ATM, OTM
Updated 2026-07-22
Quick answer
Moneyness labels a contract relative to spot: in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM).
Also called: ITM, ATM, OTM, in the money, out of the money, at the money.
Visual explainer
ITM, ATM, and OTM classify strikes relative to spot. Filter moneyness on Option Trades; watch OTM Moneyness % KPI.
Full definition
Calls are ITM when strike is below spot; puts are ITM when strike is above spot. ATM is near spot; OTM has no intrinsic value. OTM flow often looks more speculative; ITM flow can be hedges or deeper packages. Always pair moneyness with size, side, and DTE.
How it shows up in TradingFlow
- Option Trades filters
Filter moneyness (ITM / ATM / OTM) alongside side, sentiment, and premium.
How to read it
- Use OTM filters when hunting lottery-ticket flow.
- Use ITM when studying hedges or deeper directional packages.
- OTM Moneyness % KPI shows how much of visible premium is OTM.
Who this is for
Anyone screening the tape who needs to separate speculative OTM prints from deeper ITM activity.
Common mistakes
- Assuming all OTM call buys are bullish long stock substitutes (they can be spreads).
- Ignoring that ATM definition depends on vendor rounding.
Frequently asked questions
- What is OTM Moneyness % in TradingFlow?
- It is a market KPI on Option Trades: the share of premium from out-of-the-money trades in the visible dataset, useful for speculative tilt.
Related terms
- Option flowOption flow is the time-and-sales stream of options prints: contract, size, premium, and inferred aggressor side.
- Unusual options activity (UOA)UOA flags contracts or underlyings trading far above recent norms in volume, size, or premium. It is an attention screen, not a directional signal.
- Delta exposure (DEX)DEX estimates share-equivalent directional weight of an options trade, roughly delta × size (with the usual multiplier).
- 0DTE (zero days to expiration)0DTE options expire the same trading day. Gamma and theta move fastest near the money on that clock.
More guides
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Open the live Option Trades tape, rank unusual activity, and validate structure in one research path.