# Explain the Term "In-the-Money" (ITM) for a Call Option ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## 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](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/what-is-the-term-for-an-option-that-has-no-intrinsic-value/)

- [Explain the Concept of Being “In the Money” for a Call Option](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/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)?](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/what-is-the-difference-between-an-itm-otm-and-atm-call-option/)

## Glossar

### [Call Option](https://learn.greeks.live/area/call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Entitlement ⎊ The core of a call option within cryptocurrency derivatives represents a contractual right, but not an obligation, to purchase a specified digital asset at a predetermined price, known as the strike price, on or before a specific expiration date.

### [ITM Call Option](https://learn.greeks.live/area/itm-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Premium ⎊ An ITM Call Option, within cryptocurrency derivatives, signifies a contract where the strike price is below the current market price of the underlying asset, resulting in an intrinsic value component alongside the time value premium.

## Discover More

### [What Is the Difference between an ITM, OTM, and ATM Call Option?](https://learn.greeks.live/path/what-is-the-difference-between-an-itm-otm-and-atm-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between an ITM, OTM, and ATM Call Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Portfolio-Rebalancing-Visualization-Utilizing-Orthonormal-Vectors-and-Convex-Hull-Approximation.webp)

ITM (Strike 0); OTM (Strike > Price, Intrinsic Value = 0); ATM (Strike ≈ Price).

### [How Does an Option's Extrinsic Value Change as It Moves from OTM to ITM?](https://learn.greeks.live/path/how-does-an-options-extrinsic-value-change-as-it-moves-from-otm-to-itm/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an Option's Extrinsic Value Change as It Moves from OTM to ITM?](https://learn.greeks.live/wp-content/uploads/2025/10/Exotic-Options-Pricing-Mechanisms-Utilizing-High-Frequency-Automated-Market-Maker-Infrastructure.webp)

Extrinsic value peaks at ATM and decreases as the option moves deep ITM, becoming dominated by intrinsic value.

### [Define Short-Term versus Long-Term Capital Gains in the Context of Derivatives](https://learn.greeks.live/path/define-short-term-versus-long-term-capital-gains-in-the-context-of-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define Short-Term versus Long-Term Capital Gains in the Context of Derivatives](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Balance-of-Digital-Asset-Execution-Versus-Volatility-Surface-Contraction-in-DeFi-Protocols.webp)

Short-term (one year or less) gains are taxed at ordinary income rates; long-term (over one year) gains are taxed at lower preferential rates.

### [How Is Delta Used as a Probability Estimate for an Option Expiring ITM?](https://learn.greeks.live/path/how-is-delta-used-as-a-probability-estimate-for-an-option-expiring-itm/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Delta Used as a Probability Estimate for an Option Expiring ITM?](https://learn.greeks.live/wp-content/uploads/2025/10/Aqua-Metallic-Auto-Body-Panel-Detailing-Transparent-Actuator-Indicating-Liquidity-Provision-Mechanisms.webp)

Delta is used as a rough percentage estimate of the probability that an option will finish ITM at expiration.

### [Give a Practical Example of an ITM Ethereum Put Option](https://learn.greeks.live/path/give-a-practical-example-of-an-itm-ethereum-put-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Give a Practical Example of an ITM Ethereum Put Option](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Bifurcation-Modeling-Volatility-Surface-Geometry-in-Decentralized-Finance-Structures.webp)

ETH at $2,500, Put Strike at $2,800. $300 intrinsic value.

### [Does the Same Principle of Non-Optimality Apply to an American Call Option That Is Only Slightly In-the-Money?](https://learn.greeks.live/path/does-the-same-principle-of-non-optimality-apply-to-an-american-call-option-that-is-only-slightly-in-the-money/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does the Same Principle of Non-Optimality Apply to an American Call Option That Is Only Slightly In-the-Money?](https://learn.greeks.live/wp-content/uploads/2025/10/Fractalized-Digital-Asset-Exchange-Mechanism-Representing-Volatility-Surface-Discretization.webp)

Yes, the option still has time value, and selling it to capture both intrinsic and time value is financially superior to early exercise.

### [How Does a Deep ITM Call Option Behave Similarly to Holding the Underlying Asset?](https://learn.greeks.live/path/how-does-a-deep-itm-call-option-behave-similarly-to-holding-the-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Deep ITM Call Option Behave Similarly to Holding the Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Geometric-Abstraction-Sculptural-Form-Mimicking-Decentralized-Autonomous-Organization-Governance-Structure.webp)

Deep ITM Call has a Delta near 1.0, mimicking the price movement of the underlying.

### [How Does the Concept of "In-the-Money" (ITM) Apply to a Call Option?](https://learn.greeks.live/path/how-does-the-concept-of-in-the-money-itm-apply-to-a-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Concept of "In-the-Money" (ITM) Apply to a Call Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Mechanics-of-Decentralized-Finance-Asset-Volatility-Sculpting-via-Synthetic-Derivatives.webp)

A Call Option is ITM when the underlying asset's price is above the option's strike price, giving it intrinsic value.

### [If an Option Is ITM, What Is Its Minimum Theoretical Price?](https://learn.greeks.live/path/if-an-option-is-itm-what-is-its-minimum-theoretical-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![If an Option Is ITM, What Is Its Minimum Theoretical Price?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Geometric-Abstraction-Modeling-Volatility-Surface-Stratified-Liquidity-Pools-in-Decentralized-Finance.webp)

The minimum theoretical price is its intrinsic value.

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