Can an Option Switch between Being In-the-Money and Out-of-the-Money?

Yes, an option can switch between being in-the-money and out-of-the-money. This is because the moneyness of an option is determined by the relationship between the strike price and the current market price of the underlying asset.

As the market price of the underlying asset fluctuates, the moneyness of the option will also change. An option that is out-of-the-money can become in-the-money if the price of the underlying asset moves in the right direction, and vice versa.