An At The Money option is an option whose strike price is identical to the current market price of the underlying security. For example, if ABC stock is trading at $50, then the ABC 50 call option and put option are both At The Money (ATM). At the money options have no intrinsic value, but will still have extrinsic or time value prior to expiration.Both call and put options can be simultaneously At The Money (ATM). For example, if ABC stock is trading at $50, then the ABC 50 call option and put option are both ATM. This means that they have a delta of ±0.50; positive if it's a call, negative for a put (since they move inversely with one another).At-the-money options are generally less risky than in-the-money or out-of-the money options because they offer less potential for profit but also pose less risk of loss . However, this isn't always true - especially when implied volatility levels are high . In these cases , “In The Money (ITM) and Out Of The Money(OTM) options may become more risky as their premiums increase due to higher expected volatility levels ."
