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 — which is the entire reason option payoff is nonlinear and worth diagramming rather than just quoting a single number.
It's also why a strategy's payoff has to be read as a curve across a whole range of possible expiry prices rather than a single figure — moneyness at entry says almost nothing about moneyness at expiry, which is exactly the point of plotting the curve in the first place rather than just 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, 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
Quantum Horizon reads Aegis/Zenith wall migration and RRG rotation live across NIFTY, BANKNIFTY, FINNIFTY and MIDCPNIFTY — sign in and watch it work in Paper mode.