™A $50 strike call with the stock near $50 is approximately at the money; its premium can still be positive because time and uncertainty have value.
Options
At the money (ATM)
An option whose strike price is near the current price of the underlying asset.
Plain-English context
Put the definition to work.
Near the strike is a convention, not a profitability verdict. An at-the-money option can still carry a substantial premium.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. OCC / Options Industry Council — options basics