At-the-money (ATM) is an option that has a strike price equal or very close to the current market price of the underlying asset.
An ATM option has not yet realized any profit or loss, and its intrinsic value is zero. However, it can still have time value that reflects the probability that the option will end up in-the-money by the expiration date. The price of an ATM option is influenced by factors such as the volatility of the underlying asset, the time remaining until expiration, and the prevailing interest rates. Traders may use ATM options as part of a variety of options trading strategies.