How Does the Concept of ‘In-the-Money’ Options Relate to the Active Range of a Concentrated Liquidity Position?

An option is 'in-the-money' when exercising it would be profitable, meaning the strike price has been breached favorably. Similarly, a concentrated liquidity position is 'active' (earning fees) when the spot price is 'in-the-range.' When the price moves outside the range, the position is 'out-of-the-money' (inactive), and the LP must wait for the price to return to become profitable again, much like an option holder waiting for the strike to be breached.