But it would be meaningful to have an ATM option always because that would provide a context for in-the-money (ITM) and out-the-money (OTM ... also the highest theta; this follows from the ...

ATM options have no intrinsic value, but will still have extrinsic or time value prior to expiration, and may be contrasted with either in the money (ITM) or out of the money (OTM) options.

This week, we continue this discussion to show why at-the-money (ATM) calls and immediate out-of-the-money (OTM) calls are preferable to ITM calls. With the Nifty Index trading at 19736 ...

The extrinsic value or time value of the ITM and OTM options is very low near expiration because the likelihood of the price reaching the strike price is low. Some additional points about theta to ...