Spot Price

Spot price is the current market price of the underlying asset right now, the number every option's intrinsic value is measured against.

What It Means

Spot price is the current market price of an asset right now, for immediate delivery, as opposed to a futures price or an option's derived premium. When traders say "Nifty is at 24,000," they mean Nifty's spot price is ₹24,000.

Example

If Nifty's spot price is ₹24,000, a 23,800 call strike sits ₹200 below spot, so that call is ₹200 in the money. Every option's intrinsic value is measured this way: strike compared directly against spot, with nothing else factored in.