Being in the money does not mean you will profit, it just means the option is worth exercising. This is because the option costs money to buy. When you have the right to buy anything below the current market price, then that right has value. Both call and put options are simultaneously at the money. For example, if XYZ stock is trading at 75, then the XYZ 75 call option is at the money and so is the XYZ 75 put option.
An at-the-money option has no intrinsic value, but it may still have time value. Options contracts give the holder the right to buy or sell an underlying security at a predetermined strike price for a limited amount of time. Definition of Call and Put Options:Call and put options are derivative investments (their price movements are based on the price movements of another financial product, called the underlying).
At the money call option put option trade