Near-the-Money
An option with a strike price close to the current price of the underlying tradable.
Neckline
A trendline drawn along the support or resistance points of various reversal and consolidation pattern (i.e.
Usually, when setting up a collar (long stock + short call + long put), you write a near-the-money call on stock that you own and buy an out-of-the-money (i.e. lower strike) put on this same stock.
real trading world, it would be somewhat rare that an option's strike price would be exactly equal to the current market price of the underlying security or asset. Instead, options that are approaching this state are usually sold as near-the-money or ...
So, if the stock price increases by $1, an option with a delta of 50 will change in price by 50 cents. ATM options (or near-the-money options) are cheap, but their price movement is much smaller than that of the underlying stock.
When things go bad, they really only go bad for those trading the popular income options strategies. Strategies such as Iron Condors, Calendar Spreads, Covered Calls, Credit Spreads, and Near-The-Money Butterfly spreads were devastated by the recent ...
 See also: Option, Options, Stock, Market, Trading
  
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