What does "moneyness" mean?

The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price.

Moneyness

noun

noun ·Rare ·Advanced level

Definitions

Noun

1
The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price. uncountable, usually
"As an option's expiration date approaches only its moneyness has value."
2
The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity. uncountable, usually
"In good times everything seems to have moneyness; in bad times, some money doesn't have much moneyness."

Example

More examples

"As an option's expiration date approaches only its moneyness has value."

Etymology

From money + -ness.

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Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.