Moneyness
Where a strike sits relative to spot right now: in, at, or out of the money. It shifts every tick, and it sets how much of a premium is intrinsic value.
Moneyness isn't fixed at entry; it moves every tick as spot moves. A call bought OTM can finish ITM by expiry and vice versa. That is the reason option payoff is nonlinear, and the reason it is worth diagramming rather than quoting a single number.
It is also why a strategy's payoff has to be read as a curve across a whole range of possible expiry prices rather than as a single figure. Moneyness at entry says almost nothing about moneyness at expiry, which is the point of plotting the curve rather than quoting today's premium.
Example: a 25,100 call bought when NIFTY was at 24,950 starts life OTM. If spot rallies to 25,150 by expiry, that same option, same strike and same contract, finishes ITM by 50 points. Nothing about the option changed; only where spot ended up relative to it.
Call strikes
Put strikes
↑ Quantum Horizon — the ATM strike, spot's current position
Related terms
See it read live, not just diagrammed
DeltaK reads Aegis/Zenith wall migration and RRG rotation live across NIFTY, BANKNIFTY, FINNIFTY and MIDCPNIFTY. Sign in and watch it work in Paper mode.