ATM options experience the highest theta because of their time value, while ITM and OTM options have lower theta because they possess less time value to lose. Traders use theta to help see how ...

ITM options are more conservative, while more aggressive traders may prefer OTM contracts When selecting the right option to buy, a trader has several choices to make. One is whether to purchase ...

Traders define options as "in the money" (ITM) or "out of the money" (OTM) by the strike price's position relative to the market value of the underlying stock, commonly called its moneyness.