The hosts cruised to a 2-0 win courtesy of goals from the in-form Karim Benzema and Marco Asensio either side of halftime.
Real Madrid are now eights points clear at the top of La Liga, having played one more game than second placed Sevilla. Atlético Madrid, meanwhile, remain fourth.
"That's a lot of pressure you're putting on me. We're favorites today, you can say that, of course," Real manager Carlo Ancelotti said when asked if Los Blancos would win the league this season.
"We've done very well, better than others, but we're focused on the next games because a drop in concentration can cost you dearly."
There was no surprise when Benzema opened the scoring with a smartly taken volley in the first half.
Despite being found guilty of complicity in attempted blackmail earlier last month, the Frenchman has continued his fine form and leads the La Liga scoring charts with 13 goals.
However, it was his attacking partner on the pitch who stood out, with Vinícius Jr. proving a constant threat throughout.
The Brazilian didn't score but recorded two assists, his second a fine cut back to the on-rushing Asensio who curled his effort into the bottom corner.
But it was Luke Modric who impressed his manager the most, with Ancelotti reserving special praise for the midfielder's performance.
"I congratulated him on his performance because he had an incredible game," Ancelotti said post-match.
"I don't know exactly what I said to him, but he played brilliantly. With the ball, without the ball, with consistency. Extraordinary."
Atleti forced goalkeeper Thibaut Courtois into a string of fine saves, but the visitors couldn't find the breakthrough to threaten their opponent's lead.
Real Madrid has now managed to keep a clean sheet in each of its last four games in all competitions.