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At The Money: Definition, how it works and example

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At the money (ATM) is a term used in options trading to describe a situation where the strike price of an option is exactly equal to the current market price of the underlying asset. This means that neither call nor put options have intrinsic value when they are ATM; their value is entirely derived from time value or extrinsic value.

For example, if a stock is trading at ₹100, then a call option and a put option with a strike price of ₹100 are both considered ATM.

How It Works

The concept of ATM in F&O is crucial for understanding options pricing and trading strategies. When an option is ATM:

• Intrinsic Value: The intrinsic value is zero because exercising the option does not yield any profit. For a call option, this means the market price is not above the strike price; for a put option, it means the market price is not below the strike price.

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• Extrinsic Value: The entire value of an ATM option comes from its extrinsic value, which reflects factors such as time until expiration and implied volatility. As expiration approaches, the extrinsic value diminishes due to time decay.

• Sensitivity to Price Changes: ATM options are highly sensitive to changes in the underlying asset’s price. They typically have a delta of approximately ±0.50, meaning that for every ₹1 change in the underlying asset’s price, the option’s price will change by about ₹0.50.

Consider a stock currently trading at ₹150. If you purchase an ATM call option with a strike price of ₹150, here’s how it could play out:

• If the stock price rises to ₹160, you can exercise your option to buy at ₹150 and sell at ₹160, realizing a profit of ₹10 per share (minus any premium paid for the option).

• Conversely, if the stock price falls to ₹140, your call option would expire worthless since you wouldn’t exercise it at a loss. Your loss would be limited to the premium paid for the option.

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How to use ATM in Trading Strategies

ATM options are often used in various trading strategies due to their unique characteristics:

• Straddles and Strangles: Traders may buy both an ATM call and put option simultaneously to profit from significant price movements in either direction.

• High Trading Volume: Options that are ATM tend to see higher trading volumes as traders anticipate volatility, making them attractive for short-term strategies.

• Risk Management: While they offer opportunities for profit through volatility, ATM options also carry higher risks compared to in-the-money (ITM) options since they lack intrinsic value at purchase.

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How is ATM different from ITM and OTM in terms of risk and reward?

When trading options, understanding the distinctions between At The Money (ATM), In The Money (ITM), and Out Of The Money (OTM) options is crucial for assessing risk and reward. Each type of option has unique characteristics that influence their potential outcomes.

• In The Money (ITM): An option is considered ITM when it has intrinsic value. For a call option, this means the strike price is below the current market price of the underlying asset. For a put option, it means the strike price is above the current market price.

• At The Money (ATM): An option is ATM when its strike price is equal to the current market price of the underlying asset. ATM options have no intrinsic value; their worth is derived solely from extrinsic value.

• Out Of The Money (OTM): An option is OTM when it has no intrinsic value. For a call option, this occurs when the strike price is above the current market price; for a put option, it occurs when the strike price is below the market price.

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Risk and reward analysis for ATM, ITM, OTM

Option type

Risk level

Reward potential

Characteristics

ITM Low Moderate Less risky because they have intrinsic value. They provide some return with minor favourable movements but require a higher upfront premium. This leads to lower percentage returns compared to OTM options
ATM Moderate Balanced Offer a balanced approach to risk and reward. They are sensitive to price changes and have high extrinsic value. If the underlying asset does not move significantly, ATM options can expire worthless, resulting in total loss of the premium paid
OTM High High They have lower premiums since they lack intrinsic value and require significant movement in the underlying asset’s price to become profitable. However, if such movement occurs, OTM options can yield substantial percentage returns

Factors to consider when choosing between ITM, ATM, and OTM options

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When deciding between In The Money (ITM), At The Money (ATM), and Out Of The Money (OTM) options, traders should evaluate several key factors that influence their risk tolerance, market expectations, and overall trading strategy.

1. Risk Tolerance

• ITM Options: Generally considered less risky due to their intrinsic value. They provide a buffer against total loss if the underlying asset moves unfavorably. Suitable for conservative traders looking for steady returns.

• ATM Options: Offer a balanced risk-reward profile. While they have no intrinsic value at the time of purchase, they can still provide significant returns if the underlying asset moves favorably. They are suitable for traders with moderate risk tolerance.

• OTM Options: High-risk, high-reward instruments. They have no intrinsic value and require significant price movement in the underlying asset to become profitable. Best for aggressive traders willing to accept the possibility of total loss.

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2. Market Expectations

• Bullish Outlook: If you expect a strong upward movement in the underlying asset, OTM options may be appealing due to their potential for high returns. Conversely, if you expect moderate increases, ATM options could be more suitable.

• Bearish or Sideways Outlook: For a bearish view or if you anticipate minimal movement, ITM options might be preferable as they provide some return even in sideways markets.

3. Time Until Expiration

• Time Decay (Theta): ATM options experience rapid time decay as expiration approaches, which can erode their value quickly if the underlying asset does not move significantly. ITM options tend to hold value better over time due to their intrinsic component.

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• Longer Time Horizons: If you have a longer time until expiration, OTM options may be more attractive as they allow for potential price movements without immediate pressure from time decay.

5. Premium Costs

• Cost of Entry: ITM options typically have higher premiums due to their intrinsic value, making them more expensive upfront. ATM options are usually priced in between ITM and OTM options, while OTM options are the cheapest but come with higher risk.

• Return on Investment: Assess the potential return relative to the premium paid. OTM options may offer higher percentage returns if the underlying asset moves favourably, but they also carry a higher likelihood of expiring worthless.

Wrapping up

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Understanding ATM options is essential for traders looking to navigate the complexities of options markets effectively. They provide opportunities for profit through volatility while also presenting risks that must be carefully managed.

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Netflix India names Rekha Rane director of films and series marketing

Streaming giant bets on a seasoned marketer who helped build Amazon and Netflix into household names

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MUMBAI: Netflix has put a proven brand builder at the helm of its films and series marketing in India, naming Rekha Rane as director in a move that signals sharper focus on audience growth and cultural cut-through in one of its most hotly contested markets.

Rane steps into the role after seven years at Netflix, where she has quietly shaped how the platform sells stories to India. Her latest promotion, effective February 2026, crowns a run that spans brand, slate and product marketing across originals, licensed content and new verticals such as games.

A strategic marketing and communications professional with roughly 15 years’ experience, Rane has spent much of her career building technology-led consumer businesses and new categories, notably e-commerce and subscription video on demand. She was part of the early push that introduced Amazon.in, Prime Video and Netflix to Indian homes, then helped turn them into everyday brands.

At Netflix, she most recently served as head of brand and slate marketing for India from March 2024 to February 2026, leading teams across media and marketing for global and local content portfolios. Before that, as manager for original films and series marketing, she led IP creation and go-to-market strategy for titles including Guns and Gulaabs, Kaala Paani, The Railway Men* and The Great Indian Kapil Show, spanning both binge and weekly-release formats.

Her earlier Netflix roles covered product discovery and promotion in India and integrated campaign strategy to drive conversations around the content slate, product awareness and brand-equity metrics.

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Before Netflix, Rane logged more than three years at Amazon in brand marketing roles in Bengaluru. There she handled national and regional campaigns for Amazon.in, worked on customer assistance programmes in growth geographies and contributed to the go-to-market strategy for the launch of Prime Video India.

Her career began well away from streaming. At Reliance Brands in Mumbai, she worked on retail marketing for Diesel and Superdry. A stint at Leo Burnett saw her work on primary research for P&G Tide, mapping Indian shoppers’ paths to purchase. Earlier still, at Orange in the United Kingdom, she rose from sales assistant to store manager, running a team and owning monthly P&L for a retail outlet.

The arc is telling. As global streamers fight for attention in a crowded Indian market, executives who understand both mass retail behaviour and digital habit-building are prized. Rane’s career sits at that intersection.

For Netflix, the bet is simple: in a market spoilt for choice, sharp marketing can still tilt the screen. And with Rane now leading the charge, the streamer is signalling it wants not just viewers, but fandom.

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Orient Beverages pops the fizz with steady Q3 gains and rising profits

Kolkata-based beverage maker reports stronger revenues and profits for December quarter.

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MUMBAI: A fizzy quarter with a steady aftertaste that’s how Orient Beverages Limited, the company that manufactures and distributes packaged drinking water under the brand name Bisleri closed the December 2025 period, as the Kolkata-based drinks maker reported improved revenues and a healthy rise in profits, signalling operational stability in a competitive beverage market.

For the quarter ended December 31, 2025, Orient Beverages posted standalone revenue from operations of Rs 39.98 crore, up from Rs 36.42 crore in the previous quarter and Rs 33.53 crore in the same quarter last year. Total income for the quarter stood at Rs 42.24 crore, reflecting consistent demand and stable pricing across its beverage portfolio.

Profit before tax for the quarter came in at Rs 3.47 crore, a sharp improvement from Rs 1.31 crore in the September quarter and Rs 0.39 crore a year ago. After accounting for tax expenses of Rs 0.79 crore, the company reported a net profit of Rs 2.68 crore, nearly three times the Rs 0.99 crore recorded in the preceding quarter.

On a nine-month basis, the momentum remained intact. Revenue from operations for the period ended December 31, 2025 rose to Rs 117.66 crore, compared with Rs 106.95 crore in the corresponding period last year. Net profit for the nine months climbed to Rs 5.51 crore, more than double the Rs 2.18 crore reported in the same period of the previous financial year.

The consolidated numbers told a similar story. For the December quarter, consolidated revenue from operations stood at Rs 45.06 crore, while profit after tax came in at Rs 2.06 crore. For the nine-month period, consolidated revenue touched Rs 133.57 crore, with net profit of Rs 4.49 crore, underscoring the group’s improving profitability trajectory.

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Operating expenses remained largely controlled, with cost of materials, employee benefits and other expenses broadly aligned with revenue growth. The company continued to operate within a single reportable segment beverages simplifying its cost structure and reporting framework.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 7 February 2026. Statutory auditors carried out a limited review and reported no material misstatements in the results.

In a market where margins are often squeezed by input costs and competition, Orient Beverages’ latest numbers suggest the company has found a reliable rhythm not explosive, but steady enough to keep the fizz alive.

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Washington Post CEO exits abruptly after newsroom cuts spark backlash

Leadership change follows layoffs, protests and a bruising battle over trust.

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MUMBAI: When the presses are rolling but patience runs out, even the editor’s chair isn’t safe. The Washington Post announced on Saturday that its chief executive and publisher Will Lewis is stepping down with immediate effect, bringing a sudden end to a turbulent two-year tenure marked by financial strain, newsroom unrest and public backlash.

Lewis’s exit comes just days after the Bezos-owned newspaper announced sweeping job cuts that triggered protests outside its Washington headquarters and a wave of anger from readers and staff. While newspapers across the US are grappling with shrinking revenues and digital disruption, Lewis’s leadership had increasingly come under fire for how those pressures were handled.

The Post confirmed that Jeff D’Onofrio, a former Tumblr CEO who joined the organisation last year as chief financial officer, has taken over as CEO and publisher, effective immediately. In an email to staff, later shared by reporters on social media, Lewis said it was “the right time for me to step aside.”

The leadership change follows the announcement of large-scale redundancies earlier this week. While the Post did not officially confirm numbers, The New York Times reported that around 300 of the paper’s roughly 800 journalists were laid off. Entire teams were dismantled, including the Post’s Middle East bureau and its Kyiv-based correspondent covering the war in Ukraine.

Sports, graphics and local reporting were sharply reduced, and the paper’s daily podcast, Post Reports, was suspended. On Thursday, hundreds of journalists and supporters gathered outside the Post’s downtown office in protest, calling the cuts a blow to public-interest journalism.

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Former executive editor Marty Baron described the moment as “among the darkest days in the history of one of the world’s greatest news organisations.”

Lewis defended his record in his farewell note, saying “difficult decisions” were taken to secure the paper’s long-term future and protect its ability to publish “high-quality nonpartisan news”. But his tenure coincided with growing scrutiny of editorial independence at the Post.

Owner Jeff Bezos faced criticism for reining in the paper’s traditionally liberal editorial page and blocking an endorsement of Democratic presidential candidate Kamala Harris ahead of the 2024 US election. The move was widely seen as breaking the long-standing firewall between ownership and editorial decision-making.

According to a Wall Street Journal report, around 250,000 digital subscribers cancelled their subscriptions after the paper declined to endorse Harris. The Post reportedly lost about $100 million in 2024 as advertising and subscription revenues slid.

While the wider newspaper industry continues to battle declining print advertising and the pull of social media, some national titles have stabilised. Rivals such as The Wall Street Journal and The New York Times have managed to build sustainable digital businesses, a turnaround that has so far eluded the Post despite its billionaire backing.

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As Jeff D’Onofrio steps into the role, the challenge is stark, restore confidence inside the newsroom, win back readers who walked away, and prove that one of America’s most storied newspapers can still find its footing in a brutally competitive media landscape.

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