At-the-money, In-the-money, Out-of-the-money

At-the-money, In-the-money, Out-of-the-money or ATM, ITM, and OTM. These will be terms, used to describe the strike price of an options position, that will be imperative to the understanding of derivatives. 

ATM
Both calls and puts with ATM strikes have strike prices that are equal to the current price.

ITM
Calls with ITM strikes have strike prices that are less than the current price.
Puts with ITM strikes have strike prices that are greater than the current price.

OTM
Calls with OTM strikes have strike prices that are greater than the current price.
Puts with OTM strikes have strike prices that are less  than the current price.