An at-the-money option is an option whose strike price is equal to the market price of its underlying security. Suppose, if a call option on a stock has a strike price of $0.50 and the stock is currently trading for $0.50 per share, the call option is trading at the money. However, the buyer of an at-the-money option would not exercise the option as long as it remains an at-the-money option because it has no intrinsic value. Option premium consists of intrinsic value and time value. The time value of an at-the-money option is influenced chiefly by the amount of time remaining until the expiration date.