In options trading, moneyness is the relationship of the current price of the underlying asset to the strike price of a call or put option contract written on that asset. With options trading, the difference between ‘in the money’ and ‘out of the money’ is entirely based on the relationship between the strike price to the current market price of the underlying stock, bond, or commodity, and the magnitude of this position is known as moneyness. There are three types of classifications for the moneyness of an option contract: An option is ‘in the money’ if the contract would have intrinsic value if it were exercised ... (full story)