Option at the Money Law and Legal Definition
Option at the money is a stock option whose strike price is exactly at or very near the prevailing price of the underlying stock.
The following is an example of a case law referring to option at the money:
When the option strike price equals the market price of the underlying security, an option is "at the money". [Andros v. Commissioner, T.C. Memo 1996-133 (T.C. 1996)].
