Moneyness
The relationship between the current price of the underlying asset and the strike price of an option.
Explanation
Moneyness classifies options as in the money (ITM), at the money (ATM), or out of the money (OTM). It directly affects delta, premium composition (intrinsic vs. extrinsic), and the probability of expiring profitable. Moneyness is often expressed as a ratio of strike to underlying price.
Example
With AAPL at $150: the 140 call is ITM, the 150 call is ATM, and the 160 call is OTM.