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In options trading, the strike price is the fixed price at which you can buy (call) or sell (put) the underlying asset. When the stock price equals the strike price, the option is at-the-money (ATM) . This is a key moment because ATM options have zero intrinsic value —no built-in profit from exercising. Understanding moneyness helps explain this: In-the-money (ITM) : Has intrinsic value (call: stock > strike; put: stock < strike). At-the-money (ATM) : Stock price = strike p