{"id":430,"date":"2024-03-26T07:37:55","date_gmt":"2024-03-26T07:37:55","guid":{"rendered":"https:\/\/finance.canvaaslabs.com\/?p=430"},"modified":"2024-04-02T00:25:30","modified_gmt":"2024-04-01T18:55:30","slug":"introduction-to-moneyness","status":"publish","type":"post","link":"https:\/\/finance.aipropixel.com\/index.php\/2024\/03\/26\/introduction-to-moneyness\/","title":{"rendered":"Introduction to Moneyness"},"content":{"rendered":"<p><strong>M<\/strong><b>oneyness<\/b> is the relative position of the price of an underlying asset (i.e. stock) with respect to the strike price of the derivative, most commonly as a <a href=\"https:\/\/finance.canvaaslabs.com\/index.php\/2024\/03\/16\/introduction-to-call-option\/\">call option<\/a> or a <a href=\"https:\/\/finance.canvaaslabs.com\/index.php\/2024\/03\/19\/introduction-to-put-option\/\">put option<\/a>.<\/p>\n<p>Moneyness of an option is a classification method where each option\/contract gets classified as the following:<\/p>\n<ul>\n<li>If the derivative would have positive intrinsic value if it were to expire today, it is said to be <b>in the money (ITM).<\/b><\/li>\n<li>If the derivative would be worthless if expiring at its current price, it is said to be <b>out of the money (OTM).<\/b><\/li>\n<li>If the current underlying price and strike price are equal, the derivative is said to be <b>at the money (ATM).<\/b><\/li>\n<\/ul>\n<p>These three classifications helps in determining which particular option to trade for best premium depending upon the market conditions.<\/p>\n<p><a href=\"https:\/\/www.canvaaslabs.com\/our-services\/software-development\/\"><strong>Get Software Development at affordable prices<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moneyness is the relative position of the price of an underlying asset (i.e. stock) with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":["post-430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-option"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/posts\/430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/comments?post=430"}],"version-history":[{"count":3,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/posts\/430\/revisions"}],"predecessor-version":[{"id":434,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/posts\/430\/revisions\/434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/media\/431"}],"wp:attachment":[{"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/media?parent=430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/categories?post=430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finance.aipropixel.com\/index.php\/wp-json\/wp\/v2\/tags?post=430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}