Plain-English definitions for the terms you'll encounter on your financial journey.
An option is at-the-money when its strike price is the same as the current market price of the underlying security.
An option with intrinsic value, where the strike price is favorable compared to the market price.
An option that has no intrinsic value, where the strike price is unfavorable compared to the market price.
An options strategy where an investor buys both a call and a put option with the same strike price and expiration date.
An options strategy where an investor buys a call and a put with the same expiration but different strike prices.
The set price at which a derivative contract can be bought or sold when it is exercised.