Lesson 4 of 17Beginner5 min
What do ITM, ATM and OTM mean in crypto options?
They describe where Bitcoin's price is compared with the strike. At the money (ATM) is the strike closest to today's price. In the money (ITM) means the option already has value if used now: a call below the price, a put above it. Out of the money (OTM) means it has no value yet.
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Where is the price, compared to the strike?
At the money (ATM): the strike closest to today's price.
In the money (ITM): the option already has value if used now. A call below the price, a put above it.
Out of the money (OTM): no value if used now. A call above the price, a put below it. Cheaper, and needs a move to pay.
Profit or loss if the price is 83,927(today's price)
| Date | Profit / loss |
|---|---|
| On target dateFri, 2 Oct | −15.0loss |
| On expiry dateFri, 2 Oct | −15.0loss |
Move over the graph to read any price; tap or click to set it as the target.
- The 84,500 call is worth nothing at 83,927 (the price is not above the strike).
- You paid 14.98 USDT for it.
- Result: −14.98 USDT.
Bitcoin is at 75,480. A 78,000 call is…
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Next: Selling an optionKey terms
- ATM
- At the money: the strike nearest today's price.
- ITM
- In the money: the option has value if used now.
- OTM
- Out of the money: no value if used now, only time value.
- Intrinsic value
- What the option would pay if used right now.
Questions people ask
Is it better to buy ITM or OTM Bitcoin options?
In-the-money options cost more but win more often and move closer to one for one with Bitcoin. Out-of-the-money options are cheap but need a bigger move. They suit different expectations.
Why do OTM options still cost money?
Because there is still time for Bitcoin to move past the strike. That chance is the time value, and it is gone at expiry.
Which options do crypto option sellers usually sell?
Out-of-the-money options, so the price must travel before the seller loses. The further out, the smaller the premium and the higher the chance of keeping it.
How to spot them on a Bitcoin option chain
On a chain, the at-the-money row is usually highlighted. For calls, every strike below it is in the money and every strike above is out of the money. For puts it is the reverse.
In Algoclear's option chain the at-the-money strike is marked, and the other strikes fan out above and below it.
Why it matters, faster in crypto
Moneyness drives an option's price, its delta and how it behaves near expiry. At expiry only in-the-money options are worth anything. Because Bitcoin can move several percent in hours, an option can go from out of the money to in the money within a single day.
Written by the Algoclear team · Updated 22 September 2026 · Examples use Bitcoin options on Delta Exchange India.
Practise it on real prices.
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Start freeOptions trading carries risk, and you can lose money. Algoclear is a trading tool, not investment advice.