Intrinsic Value vs Moneyness

The immediate exercise value of an options contract if exercised today; for a call option: max(0, spot price − strike price); for a put option: max(0, strike price − spot price); an option with intrinsic value is in-the-money.

The relationship between an option's strike price and the current price of the underlying asset; in-the-money (ITM): the option has intrinsic value; at-the-money (ATM): strike approximately equals spot; out-of-the-money (OTM): the option has no intrinsic value.