How Does an Option Move from OTM to ITM? ⎊ Path

How Does an Option Move from OTM to ITM?

An option moves from Out-of-the-Money (OTM) to In-The-Money (ITM) when the price of the underlying asset moves favorably past the strike price. For a call, the underlying price must rise above the strike.

For a put, the underlying price must fall below the strike. This is a result of market price movement.

How Does the Delta of an Option Contract Change as the Underlying Asset Price Moves?

What Is ‘Positive Slippage’ and When Does It Occur?

What Is the Difference between an “In-the-Money” (ITM) Call Option and a Put Option?

How Does the ‘Greeks’ Delta and Gamma Change Based on a Whale-Induced Price Move?

How Does ‘Gamma’ Exposure Factor into a Long Volatility Strategy?

How Does Time Value Decay Accelerate as an Option Moves from ATM to Deep ITM?

What Is the Primary Advantage of a Credit Spread Option Strategy?

How Does the Moneyness of an Option (ITM, ATM, OTM) Relate to the Strike Price?