In, at and out of the money

Where the strike sits against today’s price.

Why it matters

In the money options behave more like shares; out of the money options are cheaper but need a bigger move.

How to read it

Calls: strike below price is in the money. Puts: strike above price is in the money.

Strike priceThe price at which an option lets you buy (call) or sell (put) the shares.DeltaHow much an option’s price changes when the stock moves $1. Also a rough chance of finishing in the money.

In the Cluenex app, this explanation opens next to every in, at and out of the money figure, with the live reading for the stock you are looking at. Open it in Cluenex

In, at and out of the money

Why it matters

How to read it

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