Moneyness is just where the strike sits versus the stock price. Pick a call or a put, then drag the strike marker (or the slider) along the price line. The shaded zone shows where your option is in the money, and the labels, prices, and deltas update as you move. TSLA spot is fixed at $420.
Price line, spot vs strike
In the money (option has value) Out of the money
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At this strike
Call
Put
Price (per share)
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Delta
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Rough chance ITM
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Plain EnglishMoneyness is just where the strike sits versus the stock price. A call is in the money when the stock is above the strike; a put is in the money when the stock is below the strike. Delta doubles as a rough read on the chance of finishing in the money, so a 0.30 delta call is loosely a 30% shot.
Three things to know about moneyness:
Calls and puts are mirror images. The same strike that is in the money for a call is out of the money for a put, and vice versa, so switching sides flips the whole picture.
At the money is the pivot. When the strike sits near the $420 spot, the call and put are worth about the same and each has roughly a coin-flip chance of finishing in the money.
Delta is a shortcut for probability. A deep in-the-money option has a delta near 1 (very likely to finish ITM); a deep out-of-the-money option has a delta near 0 (unlikely). It is a rough guide, not a guarantee.
Taxes are not shown here. Options and the underlying stock are taxed differently, and it depends on your holding period and account type. None of this is tax advice.