--- title: "ITM, ATM, OTM: what is intrinsic value and what is time" description: "An option with intrinsic value is in the money: it would pay something if it expired at that close." source_url: "https://www.rupeecase.com/learn/questions/itm-atm-otm-explained" --- Calls struck below the index and puts struck above it are in the money | Calls | Strike | Puts | | --- | --- | --- | | Settle | OI | OI | Settle | | 437.55 | 21,255 | 23,050 | 1.1L | 239.25 | | 405.90 | 2L | 23,100 | 5.2L | 258.10 | | 374.55 | 35,100 | 23,150 | 1.3L | 278.95 | | 347.70 | 8.2L | 23,200 | 17.7L | 300.60 | | Spot 23,214.95 | | 321.65 | 2.9L | 23,250ATM | 3L | 322.05 | | 294.60 | 11.2L | 23,300 | 14.7L | 347.65 | | 272.55 | 2.7L | 23,350 | 2.7L | 371.80 | | 248.10 | 10.6L | 23,400 | 11.3L | 398.75 | | 226.65 | 1.4L | 23,450 | 1L | 426.80 | Shaded cells are in the money. Outlined cells hold the most open interest among the strikes shown. OI is in units and volume is in contracts; L is lakh and Cr is crore. Nifty option chain for the 30 Jun 2026 expiry at the 10 Jun 2026 close: settle prices and open interest for nine strikes around the at the money strike. The table does not split the price into its two parts. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Read the 30 Jun 2026 Nifty chain from 10 Jun 2026. Strikes rise as you read down. The Spot line shows the index, and the row marked ATM is the strike nearest the futures price, a little above the index here. Rows above the Spot line have strikes below the index: their calls are in the money, their puts out of the money. Rows below it have strikes above the index: their calls are out of the money, their puts in the money. The ATM strike is a little above the index, so its put has a small intrinsic value and its call has none. In the money means the option has intrinsic value: the gap between the index and the strike, on the paying side. A call struck below the index has intrinsic value equal to that gap, and so does a put struck above it. Out of the money options have none. The premium is intrinsic value plus time value. Time value is what is left, and it is largest near the money. It falls as the strike moves away from the index, and it is zero at expiry. A deep out of the money option is all time value, and it pays only if the index travels far enough. The chain shows each strike's settle price, not the split. Take the intrinsic value off the settle price to see it. On expiry day the time value is gone by the close, and only intrinsic value settles. ITM, ATM and OTM say where a strike sits against the index at the close you are reading. They do not say which way the index will move. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) ITM, ATM, OTM: what is intrinsic value and what is time value?An option with intrinsic value is in the money: it would pay something if it expired at that close. The rest of the premium is time value, the price of the chance that the index moves further before expiry. LGo deeper ## Where Learn teaches this. [Go deeperMoneyness, intrinsic value and time value8 min, Beginner](/learn/path-14/module-14-4-moneyness-intrinsic-and-time-value)[Try itPayoff builderLegs from a dated chain, the expiry and before expiry curves, breakevens and the charges.](/learn/tools/payoff-builder) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [SEBI investor education, Understanding derivatives](https://investor.sebi.gov.in/understanding_derivatives.html) SEBI 2. [NSE, equity derivatives contract specifications (expiry, lot size, settlement)](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 3. [NSE option chain page (the school reads dated end of day chains, not the live screen)](https://www.nseindia.com/option-chain) NSE ?Questions people ask ## Related questions. 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