Home MarketXLS
Dashboard MarketXLS
Screener MarketXLS
Options Profit Calculator MarketXLS
Stock Ranks MarketXLS
Spreadsheet Builder MarketXLS
Documentation MarketXLS
Logout MarketXLS
Basics

How to Determine Option Moneyness?

Written by admin
Mon Jan 16 2023
How to Determine Option Moneyness? - MarketXLS
See how MarketXLS helps you take advantage in the markets.
Download Option Template →
How to Determine Option Moneyness? - MarketXLS

How To Determine Option Moneyness?

Options can be used in a variety of vehicles to help investors realize their investment objectives. The financial world has several tools to analyze the effectiveness of a particular option to reach these goals. One such tool is option moneyness, which helps investors analyze and determine how “in the money” or “out of the money” a particular option is at a given point in time.

Option Pricing

Options pricing incorporates several factors to calculate a fair and reasonable value for a range of options. This range of options can include buying a call option, which is the right to buy an underlying security, or buying a put option, the right to sell an underlying security.

In The Money

Options pricing includes several components to arrive at a fair value. Investors must consider things like the price of the option, the time to expiration for the option and the underlying price. When the underlying price is greater than the strike price of a call option, then the option is said to be in the money. Conversely, when the underlying price is less than the strike price of a put option, the option is said to be in the money.

Out of Money

Options pricing uses other components to generate a fair value. Investors must also consider variables like implied volatility, delta, gamma, rho and theta. When the underlying price is less than the strike price of a call option, the option is said to be out of the money. Conversely, when the underlying price is greater than the strike price of a put option, the option is said to be out of the money.

In Between The Money

Depending on the options pricing model used, this can result in options that are in between in the money and out of the money. When options are in between in the money and out of the money these are referred to as at the money options. In the example of a call option, when the underlying price is equal to the strike price then it is said to be at the money.

MarketXLS

Understanding option moneyness can be beneficial for investors to help avoid being on the wrong side of any option play. The complexities of options pricing can be daunting, especially for novice investors. MarketXLS provides a platform that can be used to streamline your option analysis and help construct and monitor options strategies. Ultimately, MarketXLS can help prepare investors of the years ahead and the gains they can rack in during the different market conditions.

Here are some templates that you can use to create your own models

Search for all Templates here: https://marketxls.com/templates/

Relevant blogs that you can read to learn more about the topic

Implied Volatility Screener

Interested in building, analyzing and managing Portfolios in Excel?
Download our Free Portfolio Template
I agree to the MarketXLS Terms and Conditions
Call: 1-877-778-8358
Ankur Mohan MarketXLS
I am so happy you are here. My name is Ankur and I am the founder/CEO of MarketXLS. Over the past four years, I have helped more than 2500 customers to implement their own investment research strategies and monitoring systems in Excel.
Implement “your own” investment strategies in Excel with thousands of MarketXLS functions and starter sheets.
Get started today
Search for a stock

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today

Top MarketXLS Rank stocks

Williams-Sonoma Inc. (DE) logo

Williams-Sonoma Inc. (DE)

139.46
 
USD
 
4.52
 
(3.35%)
89
Rank
Optionable: Yes
Market Cap: 8,983 M
Industry: Specialty Retail
52 week range    
101.58   
   176.89
Rush Enterprises Inc. Class A Common Stock logo

Rush Enterprises Inc. Class A Common Stock

55.74
 
USD
 
1.93
 
(3.59%)
88
Rank
Optionable: Yes
Market Cap: 2,929 M
Industry: Auto & Truck Dealerships
52 week range    
42.72   
   56.01
Haverty Furniture Companies Inc. logo

Haverty Furniture Companies Inc.

35.01
 
USD
 
0.09
 
(0.26%)
88
Rank
Optionable: Yes
Market Cap: 564 M
Industry: Home Improvement Stores
52 week range    
22.77   
   35.40
PulteGroup Inc. logo

PulteGroup Inc.

58.44
 
USD
 
1.55
 
(2.72%)
87
Rank
Optionable: Yes
Market Cap: 12,961 M
Industry: Residential Construction
52 week range    
35.03   
   58.65
Toll Brothers Inc. logo

Toll Brothers Inc.

60.26
 
USD
 
0.77
 
(1.29%)
86
Rank
Optionable: Yes
Market Cap: 6,578 M
Industry: Residential Construction
52 week range    
39.53   
   63.19
Weis Markets Inc. logo

Weis Markets Inc.

86.71
 
USD
 
0.37
 
(0.43%)
85
Rank
Optionable: Yes
Market Cap: 2,322 M
Industry: Grocery Stores
52 week range    
58.40   
   95.57
Victory Capital Holdings Inc. logo

Victory Capital Holdings Inc.

30.34
 
USD
 
0.70
 
(2.36%)
85
Rank
Optionable: Yes
Market Cap: 2,030 M
Industry: Asset Management
52 week range    
22.22   
   36.90
Regional Management Corp. logo

Regional Management Corp.

35.98
 
USD
 
1.49
 
(4.32%)
85
Rank
Optionable: Yes
Market Cap: 331 M
Industry: Credit Services
52 week range    
26.52   
   56.95
Penske Automotive Group Inc. logo

Penske Automotive Group Inc.

130.72
 
USD
 
2.90
 
(2.27%)
85
Rank
Optionable: Yes
Market Cap: 9,114 M
Industry: Auto & Truck Dealerships
52 week range    
88.58   
   131.67
El Pollo Loco Holdings Inc. logo

El Pollo Loco Holdings Inc.

12.22
 
USD
 
-0.05
 
(-0.41%)
85
Rank
Optionable: Yes
Market Cap: 455 M
Industry: Restaurants
52 week range    
8.15   
   13.97

More Features