Explain the Term “In-the-Money” (ITM) for a Call Option.

A call option is "in-the-money" (ITM) when the current market price of the underlying asset is greater than the option's strike price. This state means the option has a positive intrinsic value.

The holder could immediately exercise the option to buy the asset below the market price, resulting in a profit. The deeper ITM an option is, the higher its intrinsic value.

Define “In-the-Money” and “Out-of-the-Money” for a Call Option
What Is “In-the-Money” for a Call Option, and What Does It Imply for Its Intrinsic Value?
What Is the Term for an Option That Has No Intrinsic Value?
Explain the Concept of Being “In the Money” for a Call Option
How Does the Stock Price Affect the ITM Status of a Call Option?
What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?
What Is the Concept of “Moneyness” (In-the-Money, Out-of-the-Money) for a Call Option?
What Is the Difference between an ITM, OTM, and ATM Call Option?

Glossar